Bonds
BlackRock Says It’s Time to Exit UK Bond Bet After Recent Rally
- Asset manager says recent yield drop provides good exit point
- Sees fiscal outlook worries continuing to hang over the market
The Blackrock headquarters in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
BlackRock Inc. is ditching an overweight recommendation on UK bonds held since October, anticipating that concern over the country’s fiscal outlook will persist.
The world’s largest asset manager has turned neutral on gilts, saying it’s a good time to exit the debt after a recent rally, according to strategists from the BlackRock Investment Institute in a note. Yields on UK government bonds have slid in recent weeks after hitting multi-year highs in mid-January, on bets for faster easing from the Bank of England.