The title is a play on words, you see?  It utilizes the word "tariff," which was the subject of much discussion and market movement today, in designating the terrific performance on the part of bond markets this afternoon.  It's funny.  But you know what's not funny?  Using the word "utilize" too much.  That's one of those words people utilize when they mean "use" just to sound smarter (most of the time).  It has its place, but please, use it sparingly.  (Don't even get me started on ending sentences with "at this time!"  What good is that phrase?!).

Anyway, that's all the commentary space I will utilize for non-market-related purposes at this time.  Let's dig in...

Actually, there aren't too many moving pieces today.  Bonds rallied modestly in the overnight session with help from European bond markets.  The early domestic session was characterized by a sideways and moderately weaker grind owing to much stronger ISM Manufacturing data and a bit of uncertainty as to whether or not Powell would say anything meaningful in his 2nd day of congressional testimony.  

Powell was able to adjourn with the Senate without dropping any bombs, but Trump picked up that torch with today's Tariff announcement.  The reaction in financial markets was sporadic, but the key consideration for bonds ended up being the status of trading positions.  More than a few traders had re-shorted the bond market on this morning's bounce, and they were all quickly forced for cover (by buying bonds) when the Tariff news nudged yields back below this morning's lowest levels.   A fairly big sell-off in stocks also provided some safe-haven demand that spilled over into the bond market.

By the end of the day, 10yr yields were resting on their optimistic technical target for the week at 2.81%, and Fannie 3.5 MBS were up a quarter of a point.