Gold dropped $7 after the ISM manufacturing numbers but the bond market is keeping a level head. Part of the reason might be beginning-of-month rebalancing or flows but fast money traders also seem reluctant to bet against Treasuries.
Ten-year yields are up 4 basis points to 2.78% but until we get a break above 2.83% or the modest chart downtrend, enthusiasm will be limited.
10-year yields
