Strangely and (possibly) sadly, bonds and the equities markets seem to be paying no heed to the ever-growing debt, which has just surpassed the $22 trillion mark.
Bonds are looking for any reason to mount a long term rally, after being held hostage to the Fake threat of inflation. A very desperate Fed t is trying to maintain the illusion that the USD is the strongest currency in the world. This was achieved by shoring up interest rates even though the data (yes we know its manipulated but since it has been always been manipulated it should be used fairly in raising and lowering rates) since the onset has indicated that inflation is a non-event.
The Fed appears to be operating like an insane person that is convinced his left toe is talking to him. However, most central bankers are not taking the same path, and some emerging nations are only raising rates because they are being forced to in order to defend their currency against a stronger dollar.