Stubborn and sticky inflation could keep interest rates elevated for some time, translating into the continuance of higher yields in the bond market. "The continued strength of the U.S. economy, in spite of one of the most aggressive Fed rate hiking campaigns in decades, has caused the bond market to start to price out the immediate risk of recession. Moreover, it is pricing out the immediacy of interest rate cuts as well," Lawrence Gillum, chief fixed income strategist at LPL Financial, said.