"We were surprised by the Treasury sell-off last week in response to the various Fed speakers. Chairman Bernanke's testimony to the Joint Economic Committee seems particularly even handed," the UBS analysts declared in the note. "…Sure, the Fed could taper in the next couple of months, but it still seems very unlikely."
Indeed, UBS argued that the 10-year Treasury note, currently trading at a yield of around 2.17 percent, is roughly 50 basis points over-valued.
To use an old cliché and state the obvious, only time will tell who's right. And while it's entertaining to watch the face off, it's important to remember the debate is critical to bond market investors. If you own bonds right now, mistiming when they might decline in value could cost you a lot of money.