Phil Grossfield's Blog


Yes Bonds Will Come Back But Down Again Today; Thank You!

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You helped my family to raise nearly $1,000 to fight Cystic Fibrosis and my team raised nearly $10,000! I am deeply grateful, thank you! Pictured above is my family with Ashton and Lola (on the sides), our two neighbor friends who both have CF. Behind my wife is Sara, our neighbor friend who expressed her love by sticking her tongue out…you gotta love it! We’re at the CF Great Strides Walk in Del Mar last weekend. If you still want to donate, click here, thanks!
My wife, the Travel Mama, has officially launched her book about Vacationing with Babies and Children AND STAYING SANE.

ENTER TO WIN a copy of the book PLUS a $250 Residence Inn by Marriott gift card. Also, save 15% off when you order here through May 31 using this coupon code: DDTFQCU2. Starting in June you can buy the book at Thanks!

My Market Watch: Yes, Bonds will come back…. Why do I think bonds will come back? Because things are setting up for it in my opinion. Stock gains can’t last forever and eventually traders will start taking profits and selling off. Moreover, and again this is just my unprofessional opinion, the next negative economic report will have a bigger than usual impact because traders are looking for a reason to sell. And here’s the kicker…Bernanke and the Fed have not completely abandoned Quantitative Easing. They are still committed to buying mortgaged-backed securities for the remainder of the year. All that Bernanke said thus far is they are going to begin reducing the amount of buying…that’s a far cry from ditching it. I predict Bernanke will make a statement soon that reaffirms that commitment and when he does, bonds will sell like popovers at a Passover celebration. The big question is when, and to that I have no answer my friends. But I hope it’s soon!

Bonds are now down -88bps as I type but it looks like traders are starting to buy bonds and so we might see some relief yet today…let’s hope so. As of now, I do not know where the next floor of support is…without this reverse in trading there is no way for me to know where the bleeding stops….

My Schedule: Available all day….

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