The David Lin Report · Saturday, August 8, 2026
Ed Yardeni, who coined the term 'bond vigilantes,' states that they are effectively back, influencing bond yields to align with what the Federal Reserve should be doing. He notes that the bond market is signaling a need for higher rates, as seen in the two-year yield being 75 basis points above the Fed funds rate.
“Well, I I think in some ways they they're back.”
“The bond market seems to be doing what the Fed should be doing. And the only question is, will the Fed come around and and listen to the message of the bond market?”
“The two year is, uh, basically, uh, three quarters of, uh, of the percentage point above the current Fed funds rate, which is about 4.25 percent.”