Bond Vigilantes Fail Fed Chairman Warsh's First Test

Fed Chairman Kevin Warsh has failed his first test as 'Bond Vigilantes' drive yields higher, according to economist Ed Yardeni.

The term 'Bond Vigilantes' refers to investors who buy bonds and push down yields in the process. However, this group seems to be having an opposite effect, causing yields to rise.

Economist Ed Yardeni believes that the Bond Vigilantes are driving up yields by buying short-term government securities, which has led to higher interest rates.