Geopolitical/Financial Issues
Tomorrow doesn’t have any of the data scheduled to be posted, the only day without at least one report. We can expect Middle East news to drive trading until Wednesday’s data is released. We are seeing bonds react negatively to the Iran war headlines sooner than expected. News that oil and container shipments through the Strait of Hormuz have been halted has driven crude oil prices higher this morning. Comments from President Trump that this war is likely to continue more than just a couple days, meaning oil and other energy costs are likely to keep rising, has already translated into inflation concerns in the bond market. This is why we are not seeing the short-term positive reaction we were expecting today.