Bond Vigilantes 2025: Why Markets Enforce Fiscal Discipline
In 2025 the bond vigilantes are back, testing the fiscal credibility of Western governments. Rising debt-to-GDP ratios, political indecision and tighter markets have pushed sovereign yields higher, forcing leaders to confront the cost of inaction. This article explores why investor confidence is now the ultimate currency, how bond markets enforce discipline, and what these dynamics mean for global borrowing costs and financial stability.