Another day, another chance for market watchers and pundits of all types to make mountains out of Turkish molehills.  Yes, the financial crisis in Turkey is important and it's still a thing, but no... it's not the most important market mover for bonds or stocks at the moment.  There's only a very small possibility that it's even the biggest risk to the global financial market.

Stocks and bonds agreed today, as neither covered any special new ground despite another big drop in the value of Turkish currency.  There were also some unsubstantiated headlines that caused a bit of intraday volatility--but that was mostly limited to Turkish markets.  10yr Treasuries, for instance, were unchanged to slightly weaker.  Same story for MBS.  Had domestic markets been taking any compelling cues from Turkish market movement, we'd be seeing much stronger levels this afternoon.

Bottom line: Turkish drama kept increasing, but bonds generally ignored it today.  While that may not continue to be the case, it could just as easily be the first sign that domestic markets have traded as much of this sideshow as they're going to trade.