Global bond yields have moved sharply higher in recent weeks setting the stage for a higher for longer rate regime.

So how much higher can yields move and what are the implications for investors?

The market are going to try and steal their way to what level of yields the economy can sustain or other markets can sustain.

And so I would not rule out that you see an extension of the sell-off.

However, I think that the sell-off would not stick, meaning to the extent

you see further sell-off from here, you increase the risk of a sharper reversal in these

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

To help make sense of the turmoil in the bond market and the impact on

economic growth and markets, I'm sitting down with Pervine Corapotti, Chief

Interest Rate Strategist for Goldman Sachs research, and Anschil Siegel,

co-head of U.S. interest rate products trading in our global banking and markets business.

We'll first turn to Praveen, who's joining us remotely from Europe.

Praveen, welcome back to the program.

Good to be on.

So let's start with some broader context here.

Bond yields, obviously they've been on the rise since early last year when the Fed

started hiking substantially to deal with the inflation problem but we've seen a

particularly sharp sell-off in US treasuries in recent weeks.

So talk us a little about what's behind that new?

I'd say there's a confluence of reasons. Now if you go back a few months

most investors were expecting a recession by the end of this year.

Growth data or summer suggested that that was extremely unlikely.

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