Upgrading U.S. Treasuries to lock in income
It offers a concise look at a large manager's current Treasury and equity positioning and the reasoning behind those shifts. For advisors comparing manager outlooks, it frames a view on Fed expectations and equity risk around AI.
Summary
By the bonds & fixed income deskBlackRock's Wei Li discusses upgrading U.S. Treasuries after a six-year underweight, citing higher yields and potentially excessive Fed tightening expectations. She explains a preference for short-term bonds and says the firm is taking profits on U.S. equities, downgrading them to neutral to manage potential volatility around the AI buildout.
- BlackRock upgrades U.S. Treasuries, unwinding an underweight it says was a mainstay for most of the last six years.
- The firm cites higher yields and potentially excessive Fed tightening expectations.
- It favors short-term bonds within Treasuries.
- It takes profits on U.S. equities and downgrades them to neutral to manage potential volatility around the AI buildout.
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