Suburban moms, crypto bros, and Swifties aren’t the only voters making their presence felt this election season. Bond investors are voting with their dollars in financial markets, and they don’t like what they see.
The term “bond vigilantes” was famous coined by Wall Street veteran Ed Yardeni in the 1980s, referring to traders who protested massive deficits by selling off bonds to push yields higher.
In a note published Wednesday, Yardeni, who is president of Yardeni Research, and Eric Wallerstein, the firm’s chief markets strategist, wrote that the vigilantes are voting early and pointed to the 10-year Treasury yield soaring by 63 basis points to 4.25% since the Federal Reserve announced a half-point rate cut at its meeting last month.
“In exit polls, the Bond Vigilantes are saying they are voting against Fed Chair Jerome Powell’s dovish monetary policy because the economy is running hot, and the Fed’s…
