US interest rates are supposed to be falling, not rising. At least that's what we were led to believe a few months ago when market consensus was excited about QE2 and the Fed’s power to stimulate the economy. It appears that Bernanke is not really in control of US interest rates. That's very very scary. If the US 10 year goes above 4% we will have a highly unstable situation. Bernanke only rescue is going to be, to crash Europe and let pension funds buy his precious US 10 year bonds.
