Stronger economic data has recently raised concerns that inflation is likely to remain stickier than expected.

So how much higher could interest rates go?

I think we're getting close to the top of the mountain, and I just think we're going to sit at the top for a long time.

I'm Allison Nathan and this is exchanges at Goldman Sachs.

To help us understand the direction of interest rates and the implications for investors,

I spoke with Rick Reader, Chief Investment Officer of Global Fixed Income at Black Rock,

as well as Praveen Corapotti, chief interest

strategist in Goldman Sachs research. We first turned to Rick for some

context on the drivers of the bond market's performance this year.

It would be useful to just get some context and obviously we entered

this year with bond markets rallying and a lot of people interpreted that in

different ways. So how did you interpret heading into the year?

I think there's a couple of things. First of all, you know, one of the things I've found about

the industry is that there's this extraordinary focus on surveys and I've never really

understood. By the way, I've learned it's like election polls.

They like, people all go the same way.

They were say the same thing at the same time.

It's we go to November, December.

It was this ubiquitous view that the economy is going on a recession or deep recession.

It was just a question of how deep this recession would be.

And of course, I forget that that was overdone.

And I don't believe that we're going into recession.

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