Bond Vigilantes Fended Off as US Debt Emerges Surprise Winner

Surging debt and deficits. A relentless attack on US central bank independence. The most aggressive tariff policies in almost a century. A recipe for bond market chaos? Guess again.

For all the shocks US Treasuries have absorbed during the first months of President Donald Trump’s tempestuous second term, the market has held up remarkably well, even as government bonds from the UK to Japan have been pummeled amid heightened fiscal concerns.

US 10-year yields have fallen by more than a third of a percentage point this year, making Treasuries the only major bond market where ...