The statement opened up the possibility that the interest rate going to 4 percent isn't 100 percent guaranteed.

The possibility of rising interest rates worries investors. For many companies there is a direct effect on their earnings and stocks can also become less attractive to bonds.

Global markets have not been affected by the possibility of rising U.S. interest rates. Japan and the Nasdaq in the U.S. are gaining, so that's creating a positive flow.

Economic data have been reasonably good, so the bonds continue to sell off. Strong economic growth means the central bank is likely to tighten further. You see significant back-up in yields across the board.

There's still more room to run.

Bonds are a little bit expensive right now. Consumers are spending a little bit aggressively, which may make the central bank nervous about rising prices. It may push the bank to tighten further.