US drops 'mother of all bombs' in Afghanistan targeting ISIS caves

The GBU-43 bomb was dropped in Nangarhar province

The US dropped the largest non-nuclear bomb in its arsenal on Islamic State positions in Afghanistan Thursday, a move the Trump administration said was aimed at denying the group’s freedom of movement. 

After the bomb was dropped, US Treasuries rallied, reversing earlier declines. The 10-year US yield fell about two basis points to 2.22 per cent at 1:10 pm in New York, remaining above its session low reached in early US trading. The yield curve from five to 30 years steepened, while the 10-year break-even inflation rate pared its gain.

The deep-penetrating Massive Ordnance Air Blast bomb was used to reach “a system of tunnels and caves” used by the terrorists, White House Press Secretary Sean Spicer told reporters Thursday. He declined to say whether President Donald Trump personally ordered use of the weapon, known as a bunker-buster.

The 26,000-pound ((9,797-kg) device, designated a GBU-43 bomb, was dropped in an area of Nangarhar Province controlled by Islamic State, according to a Defense Department statement. It marked the first use in combat of the weapon, sometimes nicknamed the Mother of All Bombs.

General John Nicholson, the head of US and international forces in Afghanistan, said the bomb was used against caves and bunkers housing fighters of the Islamic State in Afghanistan, also known as ISIS-K. “This is the right munition to reduce these obstacles and maintain the momentum of our offensive against ISIS-K,” Nicholson said in a statement. It was not immediately clear how much damage the bomb did.

The move comes while the Trump administration is reviewing strategy in Afghanistan as Taliban forces continue to gain ground and Islamic State is establishing its own strongholds.

On Wednesday, Trump had added to the market rally by saying “I do like a low-interest rate policy, I must be honest with you,” in an interview with The Wall Street Journal; he also said he remains open to keeping Fed Chair Janet Yellen on once her term is up next year.

Treasuries are poised to rally for the fifth straight week, the longest stretch since July, with yields within the selloff zone created after US Election Day on November 8. JPMorgan Chase & Co technical strategists said the 10-year yield has the potential to fall to 1.88 per cent on a bullish break of 2.15 per cent, though they expect support levels to hold.