Bond vigilantes are investors who protest against expansionary fiscal and/or monetary policy by aggressively selling bonds. This in turn drives up borrowing costs for the government. In India, as the central bank and the government loosen their purse strings to combat the pandemic, the bond market has been worried about inflation and the huge government borrowing leading to an increase in yields. The RBI has warned that such bond vigilantes could undermine the economic recovery by driving up borrowing costs. It has also embarked on a bond-buying programme to limit the rise in government security yields.