Bonds Have a (Bad) Case of The Mondays

First off, there's no great explanation for the extent to which bonds are losing ground this morning.  These days happen occasionally.  Sometimes an elusive market mover becomes clearer later in the day.  Other times, we're forced to rely on our best guesses.

With that in mind, here's a quick catalog of usual suspects at times like this.

1. Mondays, liquidity greases the skids for higher volatility.  This is a non-issue when there aren't any threatening market movers in play.  Let's say illiquidity makes a move 2-3x bigger than normal.  That doesn't matter if the underlying move is quite small in the first place.  But once we get to a "medium sized" move, illiquidity will make it look big.  There's no question that