BlackRock said the U.S. sold euros to support the yen without informing European
policymakers, a move that increases geopolitical risk and further weakens the
appeal of long-dated sovereign debt. James Turner, head of EMEA global fixed
income at BlackRock, said the intervention is unlikely to directly affect
European government bonds but signals a slight deterioration in cross-country
cooperation. He added the firm is reluctant to invest in long-duration bonds
given elevated volatility in that segment of the sovereign yield curve and
ongoing geopolitical and long-end uncertainty, and does not want to assume
term-premium risk.
