Wealthion · Thursday, August 6, 2026
Steve Hanke believes the bond market is currently complacent about significant economic risks, which are not being priced in. He argues that the bond vigilantes have re-emerged, leading to rising bond yields and falling bond prices.
“Well, I think the main thing is that the markets seem to be quite complacent about all these risks. We can go through a long laundry list of risk and they don't seem to be priced in.”
“I think the bond market is going to call call a tin. Higher interest rates usually are associated with bubbles popping.”
“I think one one thing that is interesting and will ultimately work its way into the markets and prices is the bond vigilantes seem to have come out of hibernation and and bond yields have gone up significantly and just the past week and that's been a combination of I think really three things going on.”