[Toddsterpatriot]

I agree with everything you've said... except that an increase in yield is designed to exactly offset any decrease in value- hence the only function of yield change is to place in instrument at market return, not make it more attractive than before. Perhaps this is what you were saying, but I'm too much of an idiot to get it.

Actually, if the market rate remains the same the price must also remain the same. I believe that after the price drops as the Chinese sell, bidders will step up and the price will come back up/yield will go back down.

The danger that the chicken littles see is that the price never goes back up and the US has to pay higher rates to finance our deficit. I'm not gonna lose any sleep over this.

[Principled]

...after the price drops as the Chinese sell, bidders will step up and the price will come back up/yield will go back down.

Yes this is precisely the discussion.