Eurointelligence: “What happened is that the bond markets had become dysfunctional as investors suffered heavy losses from the crash in equity markets, and needed to liquidate positions by selling bonds. The US treasury market is the world’s single most important financial market.”
“It was not the bond market vigilantes that drove up bond yields over concerns about government policy.
On the contrary, bond yields had been heading downwards in strong anticipation of a tariff-induced recession… The level of 10-year yields is not, and was never the issue. It was the functioning of the market itself. The bond market vigilantes can be more dangerous when they are sick than when they are fighting.”