Treasury Market Struggles With Unfamiliar Dynamic: Buyers Who Care About Price

There's a lot of focus on Treasury supply right now, and that's an understatement. Last week's trio of auction tails ostensibly served as a reminder that price-sensitive investors are... well, sensitive to price, and the combination of dovish Fedspeak and haven-seeking tied to headlines out of Israel limited the market's capacity to smoothly absorb the supply. Said differently, it's hard to build a concession against a dovish cacophony and the beating of war drums, which left "the auction proc