ISM Manufacturing vs. 10-Year Treasury Yields

This chart shows a nice correlation between ISM manufacturing index and 10-year Treasury yields since 2010.

This chart can explain why 10-year Treasury yields have fallen.

PMI index above 50 percent indicates that the manufacturing economy is expanding, and a PMI index below 50 percent indicates that the manufacturing economy is declining. PMI index of 50 indicates no expansion/contraction.

Image: Credit Suisse

ISM Manufacturing vs. 10-Year Treasury Yields