There's an old adage that goes, "When the Fed starts panicking, I can stop panicking." If the Fed takes inflation seriously, bond investors can stay calm. If the Fed wants to continually rationalize that inflation is not a problem, bond investors might panic. Is this why bond yields are at 5.15%? So, if the Fed panics a little and hikes next week, bond investors can calm down. Otherwise, if the Fed fights rate hikes, the slow panic among bond investors could heat up.(Jim Bianco)