"Resilience" has been the theme of the past several trading days as 10yr yields have held the ceiling at 3.98%. That ceiling is now facing its most legitimate threats after several economic reports suggest persistent price pressures. This began in the overnight session with Germany's many inflation reports and continued domestically after the "prices paid" component of the ISM Manufacturing data came in at 51.3 vs forecasts of 45.1.
To be clear, the ISM data was/is today's most relevant event for bonds. Fed Funds Futures had been drifting toward higher rates between 9 and 10am but have definitely seen their sharpest movement after ISM.