Last week I mentioned the key yield level of 3.95% in the 10yr that we were fast approaching which is the highest since June ’09 and would match the highest level since Oct ’08. Today, the 30 yr bond yield at 4.79% has broken above its key June ’09 level of 4.76% and is now matching the highest since June ’08 which is the most since Oct ’07. The yield spread today between the 2 yr and 30 yr is at 375 bps, the highest since March 10th and is just 10 bps from the record high of 385 bps reached on Feb 17th.