Manafort and the bond market.

The Wall Street Journal today reported that investors did a little flight to safety moving money from equities into the bond markets as a result of today’s federal indictment of Paul Manafort, the former campaign manager for President Donald J. Trump. The increased demand drove up bond prices while sending bond yields down.

According to The Journal, yields fell to 2.374% from 2.426% for the ten-year Treasury note. Investors believe that the indictment will divert Mr Trump and Congress’ attention from tax reform and other economic growth initiatives. As the investigation continues and hearings for Mr Manafort get on the way, investors probably believe that the Administration will be in denial and prevent mode between now and mid-terms.

I believe that this indictment alone should not engender this type of fear and that by tomorrow it may pass.

My more experienced litigation posse may confirm this, but you are supposed to make your strongest argument up front, and if your argument is that there was complicity between the Trump campaign and Russia but your indictment of the campaign manager doesn’t even include the word, “Russia”, something is wrong.

Maybe Shonda Rhimes wrote this indictment or is running this investigation. Maybe she wants Mueller to do a Perry Mason and build up to a dramatic finish at the end.

So far, however, failure to properly vet a campaign manager is not an impeachable offense although one could raise questions about the judgment of Mr Trump.

Maybe there is a surprise ending being written in this script, details forthcoming. In the meantime, I don’t see the Trump administration being overly distracted by this indictment. I expect them, however, to create a few more of their own as their inside the Beltway experience grows.