I didn't quite get the warning

Weakest U.S. Bond Auction in Decade Validates Dimon’s Warning

Demand for bonds low, rates at 2.44%, Dimon says they have to jump?
Jump to where, if the ten year jumps to 3% we get a budget crisis and sequester, forcing the rate back.

So, if Dimon and his pals think a steep curve is arriving, think twice. What is more likely arising is the non-market meeting of the elders.