What happened to 10-yr note/S&P 500 correlation?

Right at the beginning of July, there started a significant breakdown in correlation between Treasuries and stocks. See this chart from Yahoo!

Or maybe the market thinks QE2 is good for both bonds and stocks?

I'm also thinking about gold and China. With China expanding its presence in the gold market, I'm curious about the government's motivations. Is it possible that they may try to create a gold bubble to replace their deflating real estate bubble? Hmmmm. China is the world's second largest gold producer. Mining does create a lot of jobs. Rural mining jobs and development in the interior of the country will keep farmers from immigrating to the cities. Definitely worth thinking more about. This could be huge.