As the market endured some heavy selling on Monday, there was some safe-haven buying. Bonds saw a bid most of the day, though there was some selling towards the end of the session. However, yields did fall a bit, with the 10 yr yield closing at the lowest level in a month.

Many have been concerned about more supply coming on-line and that is a true concern, yet when concentrated selling in equities hits as sharp as we have seen lately, it’s no wonder money flees for bonds.

The chart shows a modest uptrend but stopped firmly at the 200 ma, and notice the heavy money flow into bonds. Momentum indicators are in good shape here, and while we may see a bit of coverage here, a move above that 200 ma and confirmation would put more pressure on yields.