The high inflation story is a quite new experience to everybody involved with the financial markets. Regarding the Fed, maybe the best they can aim for is -through their actions- normalize Treasury yields to a lower slope and level than the last two years, in a way like the chart below. For sure, the yields’ journey will not be only up or non-stop straight down, even though bond traders need to start thinking outside the box to survive the bear.
Disclaimer> This post is informational only. It is not trading or investment advice! Financial markets are inherently risky. Manage your position size and honor your risk decisions that solely you are responsible for!