The big bond selloff continues today.

30-year bond futures show the carnage.

The big drop you see was a Treasury auction that Rick Santelli graded a "C-" because demand was sloppy.

But why is it seen as a bad thing? We're not like Ireland, where we actually have to worry about a failed auction. Weak demand for Treasuries isn't some kind of comment on our solvency. Instead it's a reflection of risk appetite that's pushing stocks higher today (albeit modestly so right now).

But then, it's always bad news with the bond market. One day it's flight-to-quality, the next day it's solvency fears. You can spin it however you want.

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