Bonds Are Tanking And Stocks Just Blasted To A New All-Time High

Better-than-expected survey results on manufacturing activity in the midwest United States have lifted stocks to new all-time highs this morning as Treasuries slide, sending yields racing higher.

The S&P 500 index is trading at 1859, up 0.3% on the day. Earlier, it rose as high as 1860.69, a new intraday record high. U.S. Tresaury futures, meanwhile, are 0.4% lower, and the yield on the 10-year note is 2.68%, 5 basis points below Thursday's close.

ISM-Chicago's monthly Chicago Business Barometer unexpectedly rose to 59.8 in February from January's 59.6 reading, indicating an acceleration in the pace of expansion in manufacturing activity in Illinois, Indiana, and Michigan over the past month. Economists expected the the index to fall to 56.4.

The charts below show action in various markets this morning. Across the top from left to right are the S&P 500, the U.S. dollar-Japanese yen exchange rate, and the euro-U.S. dollar exchange rate. Across the bottom are gold futures, 10-year U.S. Treasury futures, and December 2016 eurodollar futures.

Thinkorswim