Donald Trump's potential return to the presidency has raised concerns about the re-emergence of "bond vigilantes" if he implements his expansive spending plans, according to Nouriel Roubini.

Speaking at the UBS Australasia Conference in Sydney, Roubini highlighted that market discipline would respond swiftly if Trump seeks to make his 2017 tax cuts permanent.

Roubini also suggested that these fiscal policies could act as a counterbalance to more radical economic measures, with the financial markets closely monitoring and reacting to Trump's economic strategies.

The implications of these policies could have a significant impact on market dynamics and investor sentiment in the future.