Bloomberg Surveillance · Tuesday, September 29, 2026
Ed Yardeni believes the current market may be experiencing the 'revenge of the bond vigilantes,' who were suppressed during the era of quantitative easing and zero interest rates. He notes that significant debt accumulated at low rates now faces refinancing at higher yields, causing concern.
“This might be the revenge of the bond vigilantes. The bond vigilantes were suppressed from the great financial crisis to the great virus crisis with quantitative easing and zero interest rates.”
“And now that they've been sort of liberated and free to express an opinion, they're saying, well, you know, you accumulated all that debt at near zero interest rates back then. Now you're going to have to refinance it at these yields. And that's concerning.”