Bonds are continuing to suffer a beating and it's not looking pretty. This is not a market that is too sensitive on inflation at the moment and it seems to be more of a supply-demand reaction. This is something Bill Ackman pointed to when he made his short bet earlier this month here.
There was a mild pullback at the start of this month in 10-year yields back to the 4% mark but we are now seeing yields push up to 4.22% and that is the highest since November last year.
The Fitch credit ratings cut may also be a factor although I wouldn't pin that as being a crucial one in this instance.
If you're only going to have one chart to watch in trying to read broader market sentiment, I would say this is probably the best one.
In response to higher yields, we have seen the dollar find a stronger footing, equities start to come under a little more pressure, and in particular gold stumble all the way back to near $1,900 again.