No one can seem to come up with a logical explanation why the bond market continues to sell-off. Sure, there has been speculation that foreign central banks would be raising rates later this year, and higher foreign yields would provide competition for our debt. But, is there more that we don’t know about?

Last week, I made mention that Iran had plans to open a competing oil trading exchange in competition to the New York Mercantile Exchange. I also said that “both China and Japan will welcome the Iranian exchange in order to diversify their nation's investments away from dollars into other currencies. If, and when this happens, longer term interest rates in the U.S. could begin to rise.”

But what if other nations around the world begin lightening their load of US debt? Could this be what is happening?