Opinion
Return of the bond vigilantes: will inflation fears spoil the post-pandemic party?
The sell-off last week in government bonds reflects concerns that an economic boom will reignite inflationary pressures. Central banks, however, are staying the stimulatory course.
Robin Wigglesworth, Joe Rennison, Eric Platt and Colby SmithMany eulogies have been written for the “bond vigilantes” that were once said to prowl global markets for spendthrift countries to bully into fiscal rectitude. But the vigilantes seem to have saddled up again.
The term was originally coined by former EF Hutton economist Edward Yardeni in the early 1980s to describe how bond sell-offs could force the hand of central banks or governments.
Financial Times
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