Bonds Doing What Bonds Do

Bonds Doing What Bonds Do

Another week, another chance for bonds to do the only thing it seems like they know how to do recently: sell off.  It actually didn’t look like a foregone conclusion this morning.  Bonds were only slightly weaker overnight and managed to move into positive territory in the first hour and a half of domestic trading.  After that, the selling was consistent and directional for the rest of the AM hours.  A combination of Treasury auction indigestion and ongoing pre-election positioning can broadly be blamed, but without the normal level of correlation between singular big ticket data releases or news headlines and market movement, we’d take most assessments with a grain of salt when it comes to “what’s moving markets.”