A bond 'doom loop' should mean that yields rise with more borrowing — but history says the opposite

• High government borrowing is usually associated with lower bond yields, Matt King wrote in the Financial Times.
• That's the case for advanced economies most of the time, going back to the 1880s, he added.
• This record is counterintuitive to assumptions that bigger deficits force governments to raise rates to attract investors.

Rising alarm that Treasury yields will spiral higher amid deteriorating fiscal conditions won't find much backing in history, Matt King wrote in the Financial Times. 

Instead, higher borrowing levels in developed economies have almost always been associated with lower bond yields, according to the Satori Insights founder.