As President Barack Obama starts his second term, the bondmarket is already telling him that the administration's forecastsfor economic growth over the next four years are toooptimistic.

The Office of Management and Budget predicts yields on 10-yearTreasury notes will rise to average 4.1 percent in 2015 and 4.9percent in 2017 as the economy expands at about a 4 percent rate inthe second half of Obama's term. Bond prices suggest the yield, nowat about 2 percent, will average below 3 percent two years fromnow, implying that gross domestic product will fall short of OMBprojections, according to data compiled by Bloomberg.

While Obama's legacy may depend on a recovering economy, thebond market is signaling GDP may not in the next few years exceedthe 3.3 percent annual average of the decade preceding thefinancial crisis and tax revenues will fall short of what thepresident needs to close the budget gap. That's not all bad newsbecause Treasury borrowing costs just above last year's record lowsmean easy credit for consumers and companies as well as sustaineddemand for riskier assets such as stocks.