Bond vigilantes killed Trump’s reciprocal tariffs—and they’re weighing in on GOP’s push for tax cuts

• Long-term yields spiked earlier this week as traders scaled back their bets on rate cuts by the Federal Reserve and reacted to the new tax bill advanced by House Republicans. Bond vigilantes, who can bring fiscally irresponsible politicians to heel by unloading a country’s debt, may rear their head if Congress doesn’t show any appetite to bring the federal deficit under control.

Chaos in the bond market may have forced President Donald Trump to back off the reciprocal tariffs...