The Bond Vigilantes Are Stirring

The US now pays $1 trillion a year in interest on its $40 trillion federal debt. The Fed is waiting to see if inflation will continue to fall on its own. The BOJ is on the verge of more rate hiking. The outlook for oil prices remains uncertain. That has global bond investors pushing up bond yields higher. William discusses why several governments around the world fear for their currencies. … Japan’s PM may retract her opposition to rate hikes, forced by a collapsing yen and rising inflation. … The Japan MSCI’s rally has solid fundamental underpinnings, Toby writes. But yen weakness hurts the performance in dollars. … Central banks have a new crisis-time lender of last resort, the ECB.