Treasury Selloff Fuels Speculation That Bond Vigilantes Are Back
- Fed officials should be worried by surge in yields: Yardeni
- JPMorgan says bonds have dislocated from typical drivers
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The slide in Treasuries has been excessive given recent economic data and Federal Reserve policy, suggesting it’s instead being driven by fears over the swelling US deficit, some of Wall Street’s biggest names say.
Benchmark US yields jumped to the highest levels in 16 years Monday, extending an uptrend that began in May. The latest surge shows Treasuries are detached from their fundamental drivers, according to JPMorgan Chase & Co. The move shows rising alarm at what fiscal policymakers are doing, economist Ed Yardeni says.