These rate levels may prove to be one of the best buying opportunities of the year.

There is renewed customer interest in Treasuries. That buying makes us feel this general support level near 5 percent is going to hold.

Strengthening economies in Japan and Europe, combined with the threat of further rate hikes from the Federal Reserve has investors anticipating higher rates and acting defensively.

People are not feeling compelled by the price action to jump in. Every day they wait the yields have gone up.

The consensus appears to be a likely pause in June as the Fed assesses the effects of past rate hikes on consumers and the housing sector.

We like the two-year sector.