By Daily Crux Editor Brian Hunt:

More bad news for the U.S. government...

Yesterday, the interest rate on government bonds reached its highest level since November 2008. Higher interest rates mean higher borrowing costs for the world's largest debtor. Yield spreads between short-term and long-term rates are reaching new highs as well. As the WSJ reports:

Selling kicked the 10-year yield as high as 3.732%, a level last reached in November 2008, knocked the long bond down by more than two points in price and forced Treasurys' benchmark yield curve to hit a new record. The gap between the two- and 10-year note yields steepened to 275 basis points, surpassing the historic peak of 274.7 basis points hit on Aug. 13. On Tuesday, the curve was at plus 263 basis points.

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More on the dire situation in bonds:

Warren Buffett warns of massive investment bubble to pop

Marc Faber: "Gov't bond market is a disaster waiting to happen"

Treasury bond yields soar this week... inflationary boom coming

U.S. Treasury bonds suffer huge technical breakdown... sell immediately