Praveen Korapaty

How much higher can bond yields go?

Rick Rieder, Praveen Korapaty, Alison Nathan, Praveen Kaurapati

BlackRock's Rick Reeder and Goldman Sachs analysts project the Federal Reserve has peaked with rates likely to stay elevated to protect millions of jobs while inflation remains sticky. Global central banks are diverging as the Bank of Japan adjusts its yield curve control and the ECB hikes toward 4%, prompting investors to favor European assets and high-yielding short-duration cash over U.S. credit. This strategic shift aims to capture over 5% annualized returns on the front end of the yield curve while navigating a structurally higher neutral rate environment.