How about the 5.11 pct yield on the U.S. 30-year Treasury? In mid-Feb, it was just 4.50 pct.

So the story I have been hearing all day is that rates are going up at the long end because the U.S. economy is absolutely blooming. Hahaha.

When the U.S. economy is healthy, the yield curve is most likely to be sloped, but bonds are stable.

What has been happening for months now -- actually since the start of 3Q05 -- is that foreign investors don't want to hold U.S. treasury paper. They see price inflation, rising rates, and growing capital demands of the emerging economies, not strength of the American economy. They see growing political risks as well. Moreover, they don't see an Administration or Congress that is taking the right path to correcting its dual deficits.

What has been happening for months now is that the whole yield curve is rising. Bond traders are worrying all right. And it's not because the U.S. economy is so healthy.

What we have is a U.S. credit bubble about to burst.

Yield Index: