BlackRock Fund Sells Treasuries, Gilts on Inflation Caution

Markets are underestimating the risk that inflation will remain persistent in the US and the UK, according to Blackrock Inc.’s Tom Becker, who has been selling government bonds from both countries.

Becker, who co-manages the $4.1 billion BlackRock Tactical Opportunities Fund, has been adding short positions in long-end Treasuries and gilts since late last year, as he expects stubbornly high prices to get in the way of rate cuts.