More on the Bond Vigilantes and Inflation Expectations
As mentioned recently , global investors have been signaling their unease with the U.S. budget deficit by selling bonds and subsequently driving up yields on U.S. debt. The U.S. government's decision to employ trillions of dollars in deficit spending as a way to try and kick-start the economy has resulted in higher inflation expectations and higher borrowing rates on everything from mortgages to credit card debt. The yield on 10 year Treauries has increased 1.5% from the start of the year. This...
Key Phrases:
