All eyes should be on the bond market. The 10-year Treasury yield is up well over a percentage point in the past three months and is closing in on 5%. There’s a bunch of reasons for the higher rates, but most significantly is the prospect for broad-based tariffs, immigrant deportations and deficit-financed tax cuts. These policies will add to inflation and the nation’s debt load. And then mix in the possible political dysfunction around increasing the Treasury debt limit and latent worries about Fed independence, and you have a noxious brew. Highly (over) valued stock and other asset markets are increasingly at risk of a sell-off if interest rates push up much more. Today’s job report for December shows the economy is strong, but not for long if they do.