Expectations of higher interest rates at this point in the business cycle is quite reasonable, as is the expectation that levered bond funds will lose value.
Interest rates are reacting to perceptions of the strength of the economy, which is not looking all that good right now. That depressed 10 year yields this morning. But keep in mind that if the Fed decides it's not doing enough, it will do more. That will most certainly boost interest rates. The notion that we will enter another recession soon, which will boost bond funds such as AGNC, is quite unrealistic.