As the EU bonds look to be (once again) a reasonable alternative to U.S. debt investors will demand a better rate from U.S. debt. This happens no matter what the Fed does, as the market sets the rate for long debt. The Fed only sets the rate for short debt. As our exploding debt shows no sign of stopping there is now a good reason for bond buyers to want a better return. THAT is driving the market down.
Might make sense but the yields are down across the entire UST curve this morning...