Bridgewater Execs See More Bond Yield Rises Ahead As Inflation Stays High

Bridgewater co-CIOs say bond yields still have further to rise as inflation/wage growth too high and growth not weak enough for easing.

They expect "grinding pressure on growth" and equities to become less competitive vs bonds in this tightening stage.

Higher yields needed to restore risk premiums in bonds and equities. Sustained productivity boost from AI could support higher rates.

CIOs say high govt borrowing will exceed demand, requiring higher yields to lure private investors.

Equities unlikely to be rescued by earnings acceleration due to restrictive policy and earnings drag.