Sep 11, 2026 · 1h 13m
Bond investors challenge governments’ spending promises
Why The Bond Market Is Starting To Revolt — ft. Katie Martin
Rising yields are testing whether governments and central banks can restore confidence while debt, inflation, and political risks intensify.
- 1Global bond markets are repricing heavy government borrowing and inconsistent political and central-bank messaging.
- 2Equity resilience masks a different risk assessment, as bond investors focus more sharply on fiscal credibility and inflation.
- 3Federal Reserve credibility, AI financing, tariffs, and elections could determine whether market stress deepens through 2026.
Don't miss
Katie Martin argues that Federal Reserve credibility and Kevin Walsh’s policy decisions will be the most important market variables for the rest of 2026.
The brief
Financial Times columnist Katie Martin joins Ed Elson and Scott Galloway as rising government bond yields expose growing investor concern about borrowing, inflation, and mixed official messaging.
The episode’s central tension is the gap between resilient equity markets and anxious bond markets, whose investors are weighing fiscal credibility and inflation risks differently.
Across the United States, Europe, the United Kingdom, and Japan, the discussion asks whether voters will accept the taxes or spending cuts needed to stabilize public finances.
AI investment adds a newer credit risk: hyperscalers are turning to bond markets after exhausting free cash flow, potentially spreading weakness beyond technology stocks.
Katie Martin identifies Federal Reserve credibility and Kevin Walsh’s policy decisions as the variables most likely to shape markets through the rest of 2026.
Featuring
Financial Times
United Kingdom
United States
Japan
Donald John Trump
Keir StarmerListen to the full episode and explore every guest, topic, and moment on PodLume.