Will Bond Vigilantes Wreck Your Portfolio?

The moniker conjures up an image of sinister figures clad in ninja-like garb, creeping stealthily through the dark in pursuit of their objective: wreaking havoc on global financial markets. But the Bond Market Vigilantes, whose possible responsibility for the plunge in Treasury securities during May has everyone in the financial markets buzzing, are really nothing more than finance geeks with an obsessive interest in exploiting discrepancies between bond prices and what they feel are the fiscal realities of the governments issuing those securities.