The Dow Jones 30 posted it’s 7th straight lower close for the first time since 1978.
As a result, the US 10-year bond yields fell to a 1-month low of 2.38%. An increase in equity market volatility could could lead to another 10 to 15 basis points of downside on the yield.
You're not a member! Trial today
Some of the local names that have moved higher on the lower yields have been SYD, TCL, WFD and, to a lesser degree, TLS.
It’s likely interest rate stabilization will work as a near-term cap on these companies and allow for a covered call strategy to enhance the portfolio returns
