Soaring Debt Piles Will Keep Bond Vigilantes Busy

By Nour Al Ali, Bloomberg Markets Live reporter

Bond vigilantes have been busy these past few years as they sharpen their gaze on governments’ fiscal missteps. Across the globe, swelling debt levels and perceived fiscal laxity are provoking surges in yields and heightened volatility, which may keep sovereign bonds under pressure.

In the UK, the government announced a budget today that’s been well-telegraphed in an effort to avoid any sort of selloff like we’ve seen just two years ago. Yet traders are already bracing for one of the country’s biggest borrowing plans on record.