Normand Says It's Too Early in the Cycle for Inflation Surprises

The video discusses market correlations, focusing on the unusual positive correlation between stock and bond prices. Typically, these prices move inversely, but recent trends show both declining simultaneously. This could lead to high volatility if inflation surprises continue. The video also examines the potential impact of upcoming CPI reports and FOMC meetings on Treasury yields, noting that further rate hikes may depend on new signals from the Fed.

How does the text describe the relationship between inflation surprises and market volatility?

What factors are mentioned that could lead to breaking the 3% level for Treasurys?