BlackRock Tweaks Treasuries View After Sharp Run-Up in Yields
- Asset manager shifts to ‘Tactically Neutral’ as Fed rate peaks
- Expects 10-year yield above 5% as investors demand premium
BlackRock headquarters in New York.
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BlackRock Inc. strategists are betting that a recent surge in yields on longer-dated Treasuries may have gone too far, too fast, even as they expect rates to remain high.
“We turn tactically neutral long-term Treasuries as markets price high-for-longer policy rates but stay underweight strategically,” the asset manager said in its weekly research note published Monday. “US 10-year yields at 16-year highs show they have adjusted a lot — but we don’t think the process is over.”