BlackRock global co-head of bond ETFs Steve Laipply joins Market Domination to discuss the state of the bond market as the Federal Reserve kicks off its rate-easing cycle.
He notes that the upcoming Consumer Price Index report, the Fed's preferred inflation gauge, will give investors key insight into the state of inflation and the rate cut path ahead. If CPI were to come in weaker than expected, Laipply expects to see a pullback in yields. He adds,"I don't think we're expecting a wholesale jump in yields unless you get a really nasty inflation surprise.
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