Garda Hedge Fund CIO Says Bond Market’s Fiscal Revolt Not Over

The bond-market revolt against Washington’s fiscal largess is far from over, according to Garda Capital Partners’ Tim Magnusson, who says a rapid increase in yields is likely the only thing that will motivate Congress to rein in the deficit.

Thirty-year rates surged above 5% for the second time in as many months Monday in the wake of the Moody’s Ratings decision to strip the US of its top credit grade. That’s just a taste of things to come, said Magnusson, chief investment officer at the roughly $12 billion hedge fund.