Democrat Brad Sherman, the U.S. representative from California since 2013, announced last week he was selling U.S. Treasury Notes in the first week of this month.
Congressman Sherman made six trades in November, all of them including the sale of US Treasury Notes. One of the transactions made on November 3rd was valued at between $500,000 to $1 million. An additional four transactions were valued at between $250,000 to $500,000, while Sherman also reported the sale of $15,000 to $50,000 worth of Treasury Notes.
While maturity on these notes is unknown, the yield on the widely-followed 10-year note hit its 15-year high last month when it touched 4.33%. The 10-year note yield was trading above 4% on November 3rd and November 7th, dates when Rep. Sherman was selling. Treasury notes have a maturity period of two to ten years.
The sale of U.S. Treasury notes comes after Rep. Sherman bought them earlier this year. In August, Rep. Sherman disclosed he bought between $500,000 - $1 million of U.S. Treasury notes. At that time, the 10-year Treasury note was yielding just above 3%.
Congressman Sherman was also buying notes in July and May, with the amount involved in the latter transaction valued between $250,000 - $500,000.
Interestingly, the buying and selling of U.S. Treasury notes are the only trades reported by Mr. Sherman in the past three years. It is important to note that the Congressman is a Certified Tax Law Attorney and a member of the House Committee on Financial Services.
Mr. Sherman is on his way to be re-elected for another term, this time in California’s 32nd district. So far he is winning 68.2% of votes, defeating Republican Lucie Volotzky.