We have been discussing for weeks that the ProShares UltraShort 20+ Year T-Bond ETF (TBT) is warning us that longer-term rates are heading higher, but we just don’t know exactly which of the many reasons will come to the fore.

Today, bonds are getting hit, perhaps because the healthcare bill in all its splendor, expense and unintended consequences looks like a done deal. Two thousand-plus pages of mystery directives creates that much more uncertainty from a budgetary perspective. Mr. Market is not buying the "revenue neutrality" of the bill. As we speak, the 10-year yield is pushing above 3.60 percent.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.