Weekly market commentary | BlackRock Investment Institute

We have long argued that structural forces, such as aging labor forces at a time of ever-rising debt, would keep inflation and interest rates higher for longer. This view is now consensus. Surging global yields show shifting market narratives, from deep rate cuts to almost no cuts, keep driving sharp volatility. These moves go beyond market expectations of higher inflation: real yields on inflation-linked bonds have been the main driver of the recent surge. We think some of the volatility is driven by expecting the Federal Reserve to respond in a typical way to a business cycle . . .