The bond markets have bought so heavily into the Fed’s phony-baloney cover story about inflation being right around the corner that the unwind of this nutty idea was bound to be a doozey. Today’s sharp rally in bonds may in fact have put the reflation trade on ice. At the very least, it put long-term Treasurys on track for a very significant move higher — to at least 130.81 for TLT, an ETF currently trading for around 124.70 that tracks the long bond. We’ll have quite a bit more to say about this in the days and weeks ahead, but as far as we’re concerned, sanity appears to be making a comeback in fixed-income markets.