Employment is stronger than expected. The dollar is weak. Prices are beginning to climb -- as the inflation indexes are expected to show today and tomorrow. In short, the bond market is headed for substantially higher interest rates.

This bearish view is totally different from the atmosphere in the credit markets last fall when bond yields were at their lowest levels in 20 years and appeared to be headed lower still. Then the fixed-income market changed direction without warning, and yields have been climbing ever since.

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