1. people start to allocate a few percentage points less to bonds

2. governments and corporations which run deficits need to issue more bonds to fund themselves

3. interest rates need to be higher on the bonds to attract more buyers

4. previously issued bonds decline in value since new bonds are being issued at higher rates

5. portfolios on bonds decline even more as interest rates increase

6. people allocate even less of their portfolio to bonds

7. interest rates on new bonds must be higher

8. bond portfolios decline even more