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MBS and Treasuries are having a rough day after a one-two punch from European headlines and a lousy 30yr TIPs auction. We'll start with the latter as it's a bit less straightforward and paradoxically more confusing than the EU news (which almost always seems to be more confusing). Confusing because markets traded this weak 30yr TIPs auction as if it were a regular 30yr bond auction, selling the long end of the yield curve (moves rates higher) after seeing a higher-than-expected yield at the auction as well as weaker-than-average demand. TIPs rarely ever move markets as noticeably as they did today. We're not sure why the fact that accounts don't want to sign up for lower than-market-yields in exchange for an inflation adjustment during a period in economic history where inflation is very much...()