Bond Yields Fall Back–Again

August 3, 2014  9 pm

After an exciting week last week in which rates skyrocketed up on Wednesday only to fall back on Friday almost to the point where they started the week.  Obviously global political worries led to bond buyers overhwhelming the sellers once again–as they have all year.  While the employment numbers were soft (below expectations). GDP came in pretty hot—likely inventory related after the terrible Q1 numbers–honestly I am going to ignore the GDP to a fair degree–1 number is not a trend.  For now we think the 10 year treasury will move again in the 5-10 basis point range that it has been in for some time. Watch retail sales on Monday and Tuesday to see if the numbers confirm a strenghtening economy–remember the consumer still drives this economy. The weeks economic calendar is here.

In our model we did not yet purchaseCompressco Partners (ticker:GSJK)–we will purchase a partial position (200 shares) tomorrow.  We question whether the shares have bottomed as their share offering was 15 million shares (plus over 2 million overallotment) and only 6-7 million shares have traded since the offering began last week.  On a further drop from $21.80 we will fill out our position.  We have no further firm plans for tweaking portfolios in the coming week.