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.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.5
100-03 : +0-08
10 YR
2.8114 : -0.0566
Pricing as of 3/1/18 6:12PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:02PM  :  Bonds Surge to Day's Best Levels; Positive Reprice Potential
9:16AM  :  ALERT ISSUED: Slight Uptick in Early Reprice Risk For a Few Lenders
8:44AM  :  Overnight Gains Pause After Econ Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Sung Kim  :  "oh, we are breaking 2.80 today"
Michael Gillani  :  "2.81 the next one, right? Looks like we're testing it now."
Steve Chizmadia  :  "Sitting on the 25 DMA right now. A strong move from here would be important IMO"
Michael Gillani  :  "Wasn't 2.85 a floor?"
Victor Burek  :  "we havent broken any major levels"
Jason Anker  :  "float now for sure"
John Tassios  :  "focus on defecits out of control and short rate increases halting economic expansion"
Matthew Graham  :  "yeah, recession, catastrophe, massive stock sell-off (so big that money has nowhere else to go)"
Sung Kim  :  "the other option is war, and you don't want to focus on something like that"
Sung Kim  :  "focus on poor performance in the stock market"
Rich Cordova  :  "The world was so much simpler when they did. I use to just hope for poor performance in the stock market but what should I be focusing on now?"
Rich Cordova  :  "Do we still believe that bonds move inverse of stocks?"
John Tassios  :  "Sung, spot on. This will increase PPI inputs and affect bond yields in a neg way. for some of the pro biz things POTUS has done, this is a terrible move."
Sung Kim  :  "seems counterintuitive given it's inflationary implications"
Rich Cordova  :  "I've been the top producing LO for February 29th for the last 3 years!"