David McNamara: Wrestling with bond market kryptonite

The energy crisis has resurfaced investor fears around inflation while questions regarding fiscal sustainability remain

US treasury secretary Scott Bessent has spoken forcefully but the US continues to face a bond market selloff. Picture: AP Photo/Julia Demaree Nikhinson

Mon, 14 Sep, 2026 - 10:12

David McNamara: British economy is stuck in stagnation

David McNamara is the Group Chief Economist at AIB responsible for leading the bank's macroeconomic analysis and provide insights for both national and international stakeholders.

Amid a tumultuous week on markets, the ramp-up in interest rates has raised fresh risks around sovereign and corporate debt. Despite forceful interventions by the US treasury secretary Scott Bessant in recent weeks, including the “I am the house now” comment on currency market intervention, the US treasury buyback scheme has so far proven less successful in stemming the sell-off in bond markets than the US support of the yen.

More broadly, the energy crisis created by the conflicts in the Middle East has resurfaced investor fears around inflation. At the same time, questions regarding fiscal sustainability, owing to deficits which have yet to be repaired since the pandemic in many G7 countries, also remain.