Bloomberg Surveillance · Tuesday, September 29, 2026
Ed Yardeni of Yardeni Research suggests that the bond market may be influenced by "bond vigilante algorithms" that amplify volatility in response to news. He believes we are on the brink of a negative feedback loop where high yields fuel deficit worries, which in turn drive yields higher.
“We suspect that the bond market has been hacked by bond vigilante algorithms.”
“They respond to news headlines with huge trades that exacerbate volatility.”
“I think we're on the brink of it. We're sort of in the midst of it.”