Maggie Lake Talking Markets Episode 55: Are Central Banks Losing Control of Bond Markets? With Julian Brigden.
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May 21, 2025 
Julian Brigden, co-founder of MI2 Partners and creator of MacroCapture, shares his deep expertise in the world of bonds and the economy. He discusses the recent surge in U.S. Treasury yields and the ramifications for equities amidst fears of central banks losing control. Brigden argues that while there are investment opportunities, the markets are extremely fragile. He also touches on U.S. exceptionalism, the impact of technological advancements like AI, and the importance of diversifying portfolios in today's volatile landscape.
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Episode notes
US Bond Market Vulnerability
- The US bond market is vulnerable due to rising debt and burned foreign relationships.
- Rising 10-year Treasury yields reflect foreigners hedging or exiting US assets amid fiscal concerns.
Dollar Weakening Shocked Markets
- Weakening the US dollar disrupts asset prices and shocks foreign investors unhedged against FX risks.
- The Trump administration underestimated this impact, leading to unexpected bond yield rises.
Japan's Bond Market Struggles
- Japan faces a slow rate rise amid massive debt, constraining the central bank's ability to support bondholders.
- This leads to global structural bond bear markets with less central bank support for long-duration risks.