Well markets have been wild the last couple of weeks with giant sized gains in equities 2 weeks ago and then last week with surging interest rates the S&P500 gave back right around 2%. This week will be interesting (as they always are) although we will not have any of the major inflation, GDP or employment reports to drive prices around
The 10 year Treasury closed last week around 4.43% which was up 12 basis points on the week. Inflation numbers were mixed with CPI coming in right around forecast while the PPI came in somewhat hotter than forecast. Right at this moment ( 6 a.m.) we have the 10 year Treasury trading up by 4 basis points at 4.48%.
The Fed balance sheet continued its trip lower as $27 billion in assets were run off last week–now assets are firmly under $7 billion.
The average $25 preferred and baby bond got knocked down last week by 29 cents meaning that the gains realized in the previous week were lost—making making on capital gains is difficult as the average price closed at the lowest level in 2 months. Investment grade issues fell by a giant sized 43 cents, banks fell 24 cents, CEF preferreds fell by 28 cents while mREIT preferreds fell 11 cents and shipping preferreds were off 1 penny. Once again prices moved as one would expect with high quality, low coupon issues got hit hard while junkier issues with high coupons held fairly firm.
Yes the 10 year is right where it was one year ago.