Trump's Iran War Just Triggered A Second Shockwave — This One Is In The Bond Market

The Bond Vigilantes had been dormant for much of the past three to four years, until President Donald Trump's war in Iran snapped them back into action.
Now they are back, repricing sovereign bond yields from Washington to London to Frankfurt, punishing governments and central banks for any perceived leniency on inflation and forcing a wholesale rethink of where interest rates are headed in 2026.
The key question now is: Are the vigilantes right again — or has the bond market overshot, pricing a hawkish shock that will never come?
Who Are the Bond Vigilantes?
The term was coined by economist Ed Yardeni, president and chief investment strategist at Yardeni Research, in the 1980s to describe bond market investors who enforce fiscal and monetary discipline by selling government bonds — drivin