"It seems oddly coincidental that Treasury rates spike immediately after the Fed stress test of the banks. If I were a bank and the Fed was going to make me go through a stress test my reaction would be to load up on Treasuries because they would rally under most stress scenarios. Once the stress test was over, I would bail out of them to higher yielding assets. I wonder if this is what has happened. Any thought on this hypothesis."

David Fuller's view Re: "If I were a bank…" you would have to be careful not to do a Corzine! My understanding is that Treasury yields spiked because with most banks comfortably passing the stress test, there was less need for recapitalising US banks through the yield curve, courtesy of the Fed's QE.