MBS RECAP: Several Reasons Bonds Tanked Today

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Posted To: MBS Commentary

At first glance, today was all about a de-escalation of yesterday's Syria rhetoric from Trump (re: "missiles"). Given that we were able to credit yesterday's news for helping bonds improve, it isn't too much to ask to believe today's news could push the other direction. But this didn't end up being the day's only market mover for bonds, and possibly not even the biggest. And while I'll stop short of calling it a red herring (it definitely had an impact impact), there were bigger fish to fry. The biggest was today's Treasury auction process . Investors are always somewhat anxious about auctions. With debt issuance increasing (due to fiscal policies… stuff like the tax bill), investors are that much more anxious (after all, Primary Dealers are flat…(read more)

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