One Bad Auction Doesn’t Break a Bull

Mid-Week Thoughts

What’s better than one post in a day? TWO!

Bit of a wobble, but not a change in trend, yet.

Equities pulled back today - SPX down 1.7%, NDX -1.3%, small caps hit harder. Yields moved higher after a soft 20yr auction, pushing 10s to 4.59% and 20yr to 5.1%. That was the narrative trigger, but it doesn’t explain the full unwind. We’ve had bigger yield moves in the past without equities flinching this much.