This one caught me by surprise, the lower court’s ruling against using the International Emergency Economic Powers Act (IEEPA) as authority to impose tariffs could have major implications.

Think of it this way: it’s like receiving a generous gift from family, only to spend it on a new car and outfit. Then, two weeks later, they come back and say, “Oops, our mistake. We need that money back.”

The U.S. has collected billions in tariffs, though technically paid by U.S. companies, that may need to be refunded. The big question: where does the government get the money to pay it back? Likely from the bond market.

With that said the Bond market got scared and is trading lower causing rates to move up, slightly.

In other news: Jobs, jobs, jobs! We’ve got JOLTS, ADP, and the always-dramatic BLS report on deck. Could be a real bond mover, in the good way.

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