As might be expected when you have a ‘blow-out’ new jobs number (over 500,000 new jobs) interest rates have taken a pretty big jump higher–up 12 basis points on the 10 year treasury yield to 3.52%. While in years past a 12 basis point move higher would likely send prices of income issues tumbling hard–that is not the case now.
Overall prices are generally red, but maybe only by 15 cents or so – on average. My accounts are negative, but only by maybe 1/5%. There are still buyers out there stepping in to make buys–keeping losses pretty minimal. I do note that the investment grade AIG-A 5.875% perpetual preferred is off $1.50/share in the last 2 days and now yielding 6.10%–I assume it is off based on the sacking of the CFO a couple days ago. This is a decent issue if one can get it here at $23.98 or so.
The employment number sets Jay Powell and the FOMC committee for another rate hike on March 22nd (the end of the next meeting). We will have substantially more data , including more employment numbers, by the time the next meeting rolls around but I think it is highly unlikely that the FOMC will be deterred from further hikes.
So on to the weekend–I am looking forward to it – mostly because the temperature will rise here in Minnesota to the 30’s–right now it is almost 1 p.m. and it is still -4 degrees – too cold for old people like me.