STORY: U.S. government bond yields - which move inversely to prices - have been climbing after comments by Federal Reserve Chair Jerome Powell last week that indicated the central bank will keep raising interest rates to fight inflation even as that causes pain for households and businesses.

"The bond market and many parts of the market are still, I think, are still positioned such that they think things are going to return to business as usual," said Courtney, referring to lower inflation. "I don't think that's the case."