Economics
BlackRock Bearish on Treasuries as Market Goes ‘Too Far’ on Fed
- Money manager sees downside risk in short-dated U.S. debt
- Traders assign coin-flip odds to 2016 interest-rate increase
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The world’s biggest money manager just went bearish on short-term Treasuries.
BlackRock Inc. cut its view on U.S. debt to underweight from neutral, meaning it recommends less than benchmark exposure, according to a Friday note from its chief fixed-income strategist, Jeffrey Rosenberg. Traders have “gone too far” in discounting the chances the Federal Reserve will raise rates this year, he wrote. He focused his call on debt maturing between one and three years, which is more sensitive to the Fed outlook than longer-term securities.