BlackRock's Rick Rieder: Back end of the yield curve has felt a bit untethered recently

• The back end of the yield curve has felt 'untethered' due to elevated inflation and substantial Treasury financing needs.
• Treasury Secretary's actions are seen as a 'statement' to keep an eye on long-end rates, potentially capping further yield increases.
• Rieder calls for the Fed to clarify its 'reaction function' and the specific metrics it monitors (beyond just core PCE) to guide market expectations.

BlackRock's Rick Rieder discusses the recent volatility in the long end of the yield curve, attributing it to elevated inflation and significant Treasury supply. He views the Treasury Secretary's recent actions as a significant 'statement' aimed at managing long-end interest rates, suggesting a potential cap on further increases. Rieder emphasizes the need for clearer communication from the Federal Reserve regarding their reaction function and key economic metrics.