Phil Grossfield's Blog


I Spit On My Tomlinson Jersey

mnvikingsIchargers threw my Ladainian Tomlinson jersey on the floor and stomped on it. Yes, when tested I’m a Minnesota Vikings fan…you got a problem with that?

A few years ago the Vikings and Chargers were playing in San Diego in the first game of that year. I wore my Tomlinson jersey and a Vikings hat. I figured I’d been following the Chargers long enough that I had to support them, even if they were playing my precious Minnesota Vikings. But as soon as the kick-off was completed I ripped off my jersey and threw it on the floor. I just couldn’t do it. When tested I’m a Vikings fan, and I will always be a Vikings fan, and believe me, that is not an easy thing to be. So, I’m always cheering for the Bolts, but if they’re in the Vikings way then I spit on them…it is what it is…I ams what I ams… How do you like me now?!

My Schedule:  I have an appointment at 11:30a and will be done around 1:30p or so. Then I have another appointment at 4:15p.

Market Watch: Bonds Down and Falling. Pricing Improved From Yesterday But Not For Long…  This morning the 30-year Fannie Mae bond is down -33bps and falling. We could see a mid-day reprice worsening.

The Fannie Mae 30-year bond has been falling all morning and has now dropped below 2 floors of support.  Even though Interbank’s pricing has already taken into account the lower bond price, I believe they will take a prudent/conservative approach and issue a reprice worsening. So, if you were planning on locking today I hope you saw my earlier warning and locked before Capital Markets took action.

There were a few economic reports that supported a stronger economy but my opinion is the sell off this morning is simply due to traders taking gains from yesterday’s rally. Yesterday I advised you lock and I hope you did because the nice price rally I was hoping for was short-lived. Now the bond price is back to where it was Friday afternoon…all those gains are gone. But more concerning is where the next floor of support is. The next floor down, the Lobby in my graphic below, is a ways down there. It’s not inconceivable that traders will continue to sell since they don’t expect the bleeding to stop until it hits that Lobby. Remember, a trader’s job is to sell high and buy low…if they think the price will drop to the Lobby, then they will sell and wait for the price to hit that Lobby.  I hope that makes sense. Let me know if you have questions…

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