Is US financial armageddon imminent?

According to the Producer Price Index, real price inflation is currently 6.8%. If we add a reasonable 2% rate of return for investors, Treasury Bonds should be yielding 8.8%. They currently yield about 3%. If the yield is increased to what it should be, bond prices will collapse by 50%. This will take the stock market and commodities down like the Titanic. How long before this happens?