Reported 9 months ago
Bond vigilantes, traders who manipulate the bond market to protest government spending or deficits, could pose a threat to the next US president, whether it's Biden, Trump, or another candidate in 2025. With the US deficit increasing, investors might push for government action by selling bonds, causing interest rates to rise. According to Wells Fargo Investment Institute Global Fixed Income Strategist Luis Alvarado, the high debt levels and projected deficits indicate a potential reaction from bond markets, especially with the current level of spending and uncertain policy actions. The influence of bond vigilantes on government borrowing costs could become a significant concern for the future leader of the United States.
Source: YAHOO