The David Lin Report · Saturday, August 8, 2026
Ed Yardeni clarifies that 'bond vigilantes' are not a specific group of people, but rather the bond market in a broad context. He explains they are investors of all types who react to bond yields, pushing them higher if they are unhappy with fiscal or monetary policy regarding inflation.
“No, it's not, it's not anybody you could identify. It's the bond market in a broad context.”
“And the bond vigilantes are basically bond investors, uh, of all types, uh, individuals, institutional investors, uh, who are trying to decide whether bond yields are where they look attractive.”
“And in 1983, when I first coined the phrase bond vigilantes, what I said is that, uh, if the fiscal and monetary authorities don't remain vigilant about inflation, and we had a really bad inflation problem in the 70s, then the bond vigilantes will will take over.”