Treasury Yields Marking New Highs

No one heard a single word you said
They should have seen it in your eyes
What was going on around your head
--Bon Jovi

Ten year Treasury yields have blown thru resistance and are now marking highs for the year. In less than a month, long bond yields are up about 30%.

The higher sovereign yields go, the more problematic things become for the Fed. Under the funding crisis thesis, we should expect a lagged response from equities if yields continue higher.

Gradually, 10 yr yields seem destined  to become the most watched indicator on trading screens.

position in SPX, Treasuries