The chart below is the ten year treasury yield from Yahoo! Finance. I underlined the rise in yields over the past month. Yields have shot up and treasury prices have shot straight down.
Before this move higher there was not much talk about shorting treasuries. However, recently the bearish talk about treasuries has reached a fever pitch. Doesn't it always work that way?
In the long run treasury yields are likely heading higher. However, in the short run the consensus that yields will rise has become too pat. In addition, the ten year treasury is reaching a point where it will seriously threaten the economy. If treasury prices continue their climb the rest of my portfolio should perform well as I am short interest rate sensitive sectors, while my longs have little interest rate sensitivity.