Bond Heretics, Not the Vigilantes, Pose Biggest Risk for Yields

The biggest medium-term risk for bonds isn’t from buyers demanding a lower price, but from multi-asset managers who see little need to hold much government debt at all, at any price.

Bond vigilantes are back in the spotlightBloomberg Terminal. The surge in US and global yields to the highest in more than a decade has prompted speculation that investors are seeking greater compensation to hold government debt as the inflation rate remains elevated and fiscal deficits swell.