US long-term Bond Bubble

http://www.bloomberg.com/news/2012-11-13/treasuries-see-u-s-over-cliff-as-yields-converge-correct-.html

This is what you call a bubble. Investors think US is in trouble, yet they still do the knee-jerk reaction of fleeing into US bonds, just like in 2008. 

"bond investors are seeking safety from a possible downturn next year."

Well ok, maybe some expect the Fed to ease further and push bond prices up, so they speculate. They know that bonds are not worthy to hold for the long term. In this case, it is clear that they just want to 'flip' bonds, just like how they flip houses prior to the housing bust in 2007/2008.