Investors should pile into short-term bonds as markets wake up to the reality that the Fed is going to stay aggressive, BlackRock says

• Investors may want to look to short-term bonds as stocks sell off amid fears of a hawkish Fed, per BlackRock.
• US 2-year treasury yields jumped near 15-year highs this week as equities retreated. 
• Traders are assessing hotter-than-expected Core PCE data released on Friday. 

As the Federal Reserve signals a more hawkish policy path ahead and inflation stays hot, BlackRock says short-term bonds may be an attractive option as the year-to-date rally in stocks fizzles. 

US 2-year Treasury yield jumped near 15-year highs of 4.9% this week as investors placed bets on more rate hikes by the Fed.