Tomorrow's job numbers will be important. But you said it, dt. People are moving into the Bond market which is getting ready to pop, and I look forward to it. I'll be happy to exchange my bonds eventually for the super high interest of the 1970s. I plan to keep bonds until the interest rates (and yields) are starting to go significantly up. Investments like deferred fixed annuities and bank CDs do great when interest rates (and inflation) shoot up. Zero interest forced everyone out of CD's which was one of the reasons for low interest; push people into more formal investing.

When the Fed stops printing money and interest rates rise not only will there be more volatility in bonds, it will certainly affect short term debt that pays for annual (unfunded) spending as well. And rates will increase, but hopefully it won't be a pop, more like a gradual letting the air out over time, and hopefully that won't happen until the economy is much better. We are talking about 1 year before they start to rise and hopefully a few years before it is really noticeable.

However just a 1% increase in interest would add somewhere between 160 and 170 billion to the annual deficit (assuming the debt stays where it is). If projections are accurate, then a 1% increase in interest would add 220 billion or so to our annual deficit in 4 years or so. A rise in interest rates of 7-8% would mean simply paying our interest would be more expensive than our welfare programs.

EDIT - Dollar falling through the floor today, while the Yen, Euro and Gold all rally. Never sell Gold short.