The Bond Vigilantes May Need a Lot of Rope
All around the world, investors are more reluctant to lend to governments over long terms.
It’s getting ugly.
Source: Silver Screen Collection/Getty
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The infamous bond vigilantes are starting to inflict some real pain, and they’re not coming for just the US. The suffering for holders of the longest-dated bonds is global, and the market’s informal enforcers have brought enough rope to ensnare them all.
It’s tempting to pile the sharp rise in 30-year yields uniquely on the US and its squabbling politicians, but other markets are seeing selloffs just as dramatic, often thanks to their own local factors.