- Blackrock Blog – Jeffrey Rosenberg: What the bond markets tell us about reflation
We see stable global growth and inflation helping the Federal Reserve make good on its promise to Normalize normalization. Global developed bond yields appear vulnerable to further increases as French political risk fades, leaving improving fundamentals as a longer run driver for eventual global policy normalization. We remain overweight U.S credit for its income potential, but prefer investment grade debt given elevated credit market valuations. We are underweight European credit and sovereign debt amid tight spreads and improving growth.