BlackRock has adjusted its strategy for the first time in six years, shifting from an underweight to an overweight position on U.S. Treasurys while reducing U.S. equities from overweight to neutral. The asset manager, overseeing more than $15.3 trillion, justifies this shift by the marked rise in bond yields, with the 10-year Treasury yield reaching 5.25% this year. BlackRock believes market expectations of an additional 160 basis points of Fed tightening are excessive. The firm sees higher yields as an opportunity to accumulate Treasurys, partially funding this strategy by taking profits on U.S. equities. This reallocation reflects near-term risk management, while the firm maintains its positive conviction on artificial intelligence and the technology sector.
Source: Read the original article
