Bond vigilantes are a popular topic in financial media. Part of this is that most people find government bonds boring, and they would rather read about equities, which can have more exciting returns as well as more interesting company and sector specific stories. Bond market vigilantes who are about to discipline naughty governments creates a fun narrative hook to a market that is otherwise characterised by daily price changes of around 20 basis points. However, if you are actually paid to invest in bonds, the “bond vigilante” narrative is a trap. Government bond markets are boring, technical markets, and you do not ... (full story)