209: Why Are Bond Yields Rising As Rates Are Cut?

Sharp moves in bond yields have been a key area of focus in markets to start the year. Yields on 10-year treasury bonds are over 1% higher since September 2024 — a historically rare occurrence in both the direction and magnitude of moves. So, what’s driving this phenomenon and how is it reshaping the investment playbook compared to previous cycles? Jeff Rosenberg, Senior Fixed Income Portfolio Manager within the BlackRock Systematic business, will share his perspective on the different dynamics impacting bond yields and how his team is navigating this unique environment.

Sources: Federal Reserve Bank of New York. Statement based on the ACM Model of estimated term premium dating back to the 1960s; Federal Reserve Bank of St. Louis, referencing the US deficit as a percentage of GDP. Data accessed January 2025

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