BlackRock Is Even More Convinced Inflation to Remain Sticky
- Firm added to overweight in inflation-linked debt in March
- US data Wednesday expected to show inflation’s stickiness
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BlackRock Inc. increased its overweight call on inflation-linked debt on the view that price pressures will remain well above the Federal Reserve’s 2% target.
The firm has been overweight the securities strategically for a few years, noting structural trends are likely to sustain price pressures, and added to the position last month when market measures of inflation expectations fell, strategists at the BlackRock Investment Institute wrote in an April 10 note. Wednesday’s release of consumer-price data will confirm inflation’s stickiness, they wrote.