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BlackRock Warns It’s Too Early to Buy East EU Bonds, Currencies

  • Region’s debt set for record losses in 2021 amid tightening
  • BlackRock favors Czech bonds, helped by central bank clarity

BlackRock Inc. is warning investors against dipping back into east European bonds despite their increasingly fat premiums over German debt.

The sell-off in Czech, Hungarian and Polish government bonds will continue next year as central banks need to raise interest rates further before inflation peaks, according to Beata Harasim, a senior investment strategist at the world’s largest asset manager.