MarketBeat on WSJ has a mention of how people are talking about a treasury bubble. The article then goes on to talk about short term treasuries.
It is nonsense to use a term "bubble" for short term treasury bills. When the yield is below the book rate, sure they've been bid up, but with a short timeline they simply can't be bid up much. People are there for safety reasons. They'd much rather risk losing 1 or 2% because the short term treasuries got bid then risk being in a place where you see huge drops.
I would suggest that long term treasuries are bubbled and should there be a an interest rate correction upwards the decline in face value will be huge. I can't see with the level of debt and gross uncertainty of the financial system leaving people with much of an appetite to buy more long term bonds at the pathetic rates being offered.
The data out suggests foreign investors are already backing off and that will be a big problem.