The trigger for the next leg down in bond prices is the surprise announcement overnight of a compromise on an extension of the Bush tax cuts. Dividends and capital gains will continue to be taxed at a 15% rate. Estate taxes are capped at 35%, and are tax free up to $5 million. Unemployment benefits have been extended by 13 months. And to really juice consumer spending, payroll taxes have been cut by 2%. You can really see that it was an “all of the above”, throw in the kitchen sink sort of compromise.