A strong rally has brought yields on the 10-Year Note within easy reach of the 3.11% target first aired here in December, when the rate was hovering around 2.35%.  It’s remarkable that the U.S. economy and the stock market appear to have survived the rally, although it’s possible that by June both could be headed into the tank. It’s difficult to predict exactly how much tightening they’ll be able to withstand, but a push above 3.00% would surely test bulls’ resolve.  Moreover, a further move exceeding 3.22% would trip a Hidden Pivot alarm implying the uptrend could have significantly further to go. It won’t be long before we are able to determine how likely this is. A few of the usual high-profile imbeciles have pointed out that the economy has done okay with interest rates at much higher levels.  That may be true, but never after rates had been held near zero for so long. As things stand, a rate of “just” 4% would probably be enough to trigger a deflationary implosion capable of wreaking havoc on all of the Fed’s delicate, misbegotten plans.