Treasury yields rise while gold declines on strong ISM manufacturing data

FXStreet (Mumbai) - The Treasury yields at the short end as well as at the long end of the market curve rose while Gold extended losses after the US ISM manufacturing came-in much higher than the market expectation.

The Ten-year treasury yield currently trades at 2.36%, compared to the day’s low of 2.301%. On the other hand Gold has declined to USD 1666.40/OZ levels, compared to the pre-data level of USD 1771. The ISM Manufacturing in October rose to 59.00, compared to the expectation of 56.1.

Meanwhile, the stock markets in the US have fallen into the red. The DJIA has erased early gains to trade 0.13% lower at 17,367.50, while the S&P futures are down 0.02% at 2011.50 levels.

The gains in the treasury yields may not last long enough if the US Equities extend losses during the day ahead.

Ten-year Treasury yields

The yield has an immediate resistance at 2.362%, above which it can rise to 2.5%. On the flip side, failure to rise above 2.362% can push the yields back to 2.3%.