Shorter dated bonds are very likely to come under pressure. The economic backdrop to allow the ECB to raise rates is developing and people will be looking for them to act at the March meeting.

No one's going to be keen to buy the market now with the ECB meeting looming. We're likely to get more reminders that inflation is higher than the ECB would like and they will be raising rates again in June.

To finance deficits, the government must sell bonds to investors, competing for capital that could otherwise be used to invest in stocks or corporate bonds. Government borrowings raise long-term interest rates, stifling economic growth.

The inter-relation of these markets is such that if Europe goes down by the extent it has, the U.S. is going to be affected.

Europe is clearly showing continued signs of strength, and the ECB is responding to that. There is a chance yields rise from here.

Europe is clearly showing continued signs of strength and the ECB is responding to that. There is a chance yields rise from here.