Repricing Sovereign Risk

Less investor demand for bonds raises their yields, and consequently, lifts the interest that governments pay to bondholders. But because government bonds
are used as a benchmark for the interest rates charged all types of debt, including home mortgages, a sustained rise in their yields could ripple through the economy.

Is this the beginning of the end for bail-o-rama? The perception of "risk free" may well be changing. It will happen, the question is how fast, and whether this is the beginning. If so the US dollar and other bailout currencies may start to come under selling pressure. Once it starts expect a sharp reversal in interest rate trends.

20% Mortgage rates in 2012?

Maybe. Check the link to the article from the NY Times for a heads up.