BlackRock Says Higher Government Bond Yields Are Here to Stay

Government bond yields are set to stay higher for longer as the Iran war keeps inflation elevated, according to BlackRock Investment Institute.

Inflation pressures were already percolating before the latest conflict in the Middle East, strategists including Jean Boivin and Wei Li wrote in a report. The oil shock from the war will only compound those risks, piling even more pressure on central banks to keep monetary policy tight to rein in prices.