Ed Yardeni on When It Will Be Time to Worry About the 'Bond Vigilantes'
Yardeni, who coined the term "Bond Vigilantes," said he isn't "pushing the panic button" amid the sharp rise in sovereign bond yields.
TL;DR
- Sovereign bond yields, including the 30-year U.S. Treasury and 10-year German bund, have reached multi-decade highs.
- The rise in yields has caused pressure on global equities, with sharper declines observed in Asian markets like Japan's Nikkei 225.
- Ed Yardeni, creator of the term "Bond Vigilantes," is not currently panicking but is watching yields closely, particularly the 10-year U.S. Treasury.
- Yardeni's previous stance was that U.S. bond yields could trade in a normal range of 4.00%-5.00% without negative economic impacts.
- Factors such as Federal Reserve policy and oil prices are noted as potential concerns for bond vigilantes, and upcoming Fed meeting minutes may influence yields.