Midday Commentary: Investors anxious about Syria; Treasuries rally, but preferreds stay quiet

By Christine Van Dusen

Atlanta, Aug. 27 - The preferred stock market was quiet on Tuesday morning as investors worried about the situation in Syria, which pushed Treasury prices up.

The 10-year Treasury was yielding 2.752% early in the session.

"It's going to be pretty quiet for the next week unless the U.S. starts attacking Syria," a trader said. "Then there will be a flight to quality, and people will sell everything and buy Treasuries. But we're not seeing that yet."

On Tuesday morning, Wells Fargo & Co.'s 8% non-cumulative perpetual class A preferred stock (NYSE: WFC-PJ) was among the most active, trading up 2 cents at $28.57.

Barclays Bank plc's 7¾% non-cumulative callable dollar preference shares traded down 4 cents at $25.42.

And Citigroup Capital X's 6.1% TruPS Capital Securities (NYSE: C-PR) were quoted in the morning at $24.94, up 2 cents.

"We've seen a few trades but nothing of crazy size," the trader said. "A big corporate book is coming in September, so people are just not filling up for that reason."

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