What! Treasurys are tanking?

NEW YORK -- Prices of most Treasury securities fell Monday as investors demanded higher interest rates to absorb the whopping $67 billion in government debt supply coming this week.

The yield on the 10-year note touched 3.056% on an intraday basis while the 30-year bond's yield hit 3.764%. Both are the highest levels seen since late November, according to data provider CQG. The two-year note's yield rose back above 1%.

We talked about this yesterday... stand-by for Treasurys to tank as the USG tries to pimp-out more bonds to fund the Inter-Generational Wealth Confiscation Act of 2009 coursing its way through the bowels of Congress like so much bad sausage.

On 12/19/08 , the 30-year Treasury closed at a yield of 2.55%. Less than two months later the yield on the long bond has skyrocketed to 3.754% and is just getting started. ThinkTr the stock market is swimming against a stiff current now? Wait until investors can get 6-7% in a 30 year bond and they pull money out of stocks for the "security" of a 30-year Treasury. Does anyone think, with all of the new Reserve Notes flooding the Money Supply, that we couldn't revisit 1981 which saw 15+% 30-year bond yields?

I forget who it was but a pithy market pundit recently said that before we hit bottom, the price of gold and the DJIA will merge.... Will gold rise to $8,000 an ounce? Will the DJIA drop to 950? The answer to both questions? Yes

Other noteworthy tidbits in todays news:

Obama's Missile Test

How Government Created the Financial Crisis

There Is Room for Rate Cuts