The massive selloff in the long end treasuries is not due to the change in failure to deliver rules, or the massive amount to be financed in the coming months. Think about the date. We are 15 days out from last year's tax filing deadline. This is about how long the treasury needed to calculate the income from this year's tax receipts. Those calculations have surely been leaked to the major dealers that trade treasuries. The number must be horrific. Treasuries are in a serious bear market now, and are going to have a tough time until the economy shows signs of any "real growth", non-inflationary growth. Tax revenues have basically disappeared. The only way the government will be able to finance this massive, monstrous new interventionist policy without crashing the dollar is to print, print, print, and print more and raise the interest rate that's paid on those printed dollars. So, that massive short squeeze/quantitative easing rally that happened last fall is now done. We are now in a new reality for US government debt.