The bond market fundamentals are one thing. The technicals and market internals are another. This amazing chart really says it all about the third category -- internals. Courtesy of Bloomberg, it shows the "net long" position in 10-year Treasury Note futures. That's the difference between longs and shorts among large speculators, typically seen as hedge funds and other hot money types.
At more than 430,000 contracts, net longs are up 24% in a week. Moreover, as you can see, they're at the highest rate in recorded history. Contrary indicator? Time to sell bonds? Things that make you go "Hmmm..."