UH OH: Fears About Treasuries. “A long period of stability for the US government bond market showed signs of cracking this week as a lack of investor appetite for new debt sent the benchmark 10-year yield to its highest level since last June. For more than a year, analysts have been warning that record sized debt sales by the US Treasury were at odds with a 10-year yield sitting comfortably below 4 per cent. This week, the yield on 10-year notes jumped from 3.65 per cent to a peak of 3.92 per cent on Thursday. . . . For now, other key markets such as equities and the dollar have not been affected by the rise in yields, but that may change if the 10-year rises decisively above 4 per cent and big auctions next month are also poorly received.”