There is a significant divergence in markets

US stocks are brushing off coronavirus fears today as the S&P 500 jumps 38 points on earnings enthusiasm. But bonds and hard assets are much less enthusiastic.

US 10-year yields are up 3.6 basis points to 1.64% today after falling as low as 1.57% in early trading. If the gains hold it will be the first climb in seven days.

There is a significant divergence in markets

The next hurdle for Treasuries will be a 7-year auction at the top of the hour. In the when-issued market the notes are trading at 1.570/1.565%.

Yesterday's five-year sale was on the soft side and a repeat would help bonds to fill in this week's gap.