Rates increased today as May's Non Farm Payroll report showed significantly lower job losses than were expected.  Employers cut 345,000 jobs vs the expected 520,000. The unemployment rate rose to 9.4%, which was higher than the forecasted 9.2%.  However, economists are attributing the increase to more optimism by laid off employees who had stopped looking for work (which had excluded them from the totals) and now are looking again (which includes them again in the unemployment figures).  The bond market often responds negatively to good economic news because good economic news makes stocks more attractive.  Bonds compete with stocks for investor capital. Additionally investors start to price in a higher potential for future inflation and for higher rates in the future and are less willing to purchase long term bonds at current low rates.