Phil Grossfield's Blog

My Schedule…and A Little Extra:   Short weeks are weird for me…it doesn’t feel like Friday.  Not that I’m complaining, but it just feels off.  On that note, get your rear-end in gear and do something…NOW…read My Market Watch below….

My Schedule:  Available all day….

My Market Watch:  The Bond market is improving this morning and currently bonds are trading up about +16 bps since rates were published this morning…at this pace we could see a price improvement unless something stalls or reverses the trend.  Yesterday, the market made a correction – sometimes I have an affinity for stating the obvious, or so I am told.  Three mid-day rate changes for the worse came on the discovery that the Fed was discussing backing off Quantitative Easement “QE” policy.  In previous posts I mentioned that we are in an artificial market, that is, the Fed is employing a policy of buying lots and lots of bonds which artificially keeps rates/prices low.  This statement below challenges the continuation of that policy…from the Fed minutes which were released yesterday:

“Several others thought that it would probably be appropriate to slow or to stop purchases well before the end of 2013, citing concerns about financial stability or the size of the balance sheet.  One member viewed any additional purchases as unwarranted.” 

So, bond traders freaked out and sold off bonds and when that happened rates/pricing got worse…three times worse yesterday.  But even though bond traders freaked out, there’s no need for you to freak out…so don’t freak out…at least not about that.  Just because the Fed had a discussion about the continuation of the policy does not mean they will change things anytime soon.  From what I’m reading there is a consensus the policy will remain intact for most if not all of 2013.  But this year is going to race by…and if you’re not making plans and strategizing on how to get new business, and purchase business, you will find yourself in trouble when rates eventually go up…this I am sure of.  So, if you want to freak out about something, freak out about that and get your ass, I mean rear-end, in gear and do something about it…NOW.  My Disclaimer

My Fun Stuff:  collection of interesting and fun things