Two Market Signals, One Story

BlackRock 5.22K Followers Follow Summary Strong corporate earnings and rising government bond yields tell the same story: a structurally higher cost of capital calls for a different portfolio approach. U.S. Treasury yields fell as weak jobs data eased pressure for an immediate Fed rate rise. But a steeper yield curve suggests long-term inflation risks remain. July inflation data will show whether softer hiring and wages are feeding through to prices. We expect some inflation rebound from June’s softer reading. IURII KRASILNIKOV/iStock via Getty Images Transcript Rapidly rising earnings forecasts alongside higher long-term bond yields are not contradictory signals. We think they're telling the same story: structural forces are reshaping markets, supporting earnings and keeping the cost of capital higher. This article was written by BlackRock 5.22K Followers Follow BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable.