Some attribute the rise in rates to expectations of an improving economy. I suppose they are right. Some call the rise in rates an expectation for higher inflation. Same thing. And some call the rise in rates a decline in the willingness of bond holders to hold U.S. Govt debt for such low yields.(inflation?) Some cite the impending downgrade of U.S. Govt debt by the major ratings agencys.
A downgrade of a debt issuer implies doubt about the issuers ability to repay.What!!!??
Whatever the reason, interest rates are going up. Not a good thing for a debt-based economy that depends on asset values to sustain itself.
Not a good thing for a government deep in debt, whose debt maturity is 4-5 years in duration. ie, the huge borrowing over the last couple of years will come due in 2-3 years. More borrowing.
Not a good thing for taxpayers who don't want to pay taxes, but want their money to retain it's value.
Not a good thing for a stock market that looks ahead to the future.
But, meanwhile, back at the ranch:
Here is the TLT, an ETF of the 20yr govt bond. Going down. It is either a bottom or a floor. If the floor gives way, down it goes.