The biggest holder of US debt is now Ben Bernanke

http://www.zerohedge.com/article/today-biggest-holder-us-debt-united-states-america

...the Fed's official holdings of US Treasury securities now amount to $891.3 billion, which is higher than the second largest holder of US debt: China, which as of September 30 held $884 billion, and Japan, with $864 billion.

Finance 101:  when interest rates rise, bond prices decline.