Bond Market Under Strain: Inflation, Fed Shifts, and the Debt Mountain

Barry Ritholtz argues the bond market is unsettled by a tangle of forces: inflation driven by tariffs, energy prices, and geopolitical tensions; a Federal Reserve whose leadership and policy signals (including data choices and forward guidance) have unsettled markets; ongoing Treasury debt buybacks; and a ballooning national debt that raises borrowing costs. With inflation sticky and rate cuts unlikely, yields stay higher for longer. For investors, the takeaway is to pursue higher-yielding options like munis and TIPs, chosen to fit age, income, tax bracket, and residence.