BlackRock’s Kosterich: Rates Can Tick Higher, But Not Melt Up

Mr. Farrow discusses the persistence of negative yields, particularly in Europe and Japan, due to muted growth prospects and central banks' policies. He highlights the role of central banks in managing interest rates and the global economic challenges that limit potential rate increases. Despite possible short-term rate hikes, the economic situation and central banks' guidance suggest rates will remain low.

What factors are contributing to the negative yields observed in Europe and Japan?

Discuss the potential self-limiting nature of a treasury sell-off.

How do central banks influence the long end of the yield curve?

What are the implications of elevated unemployment and demand destruction on interest rates?

In what ways might a democratic sweep affect the path of interest rates?