BlackRock Investment Institute raised its allocation rating on US Treasuries and
now favors short-dated paper, ending a near six-year underweight stance. The
firm cited materially higher yields and the prospect that markets may have
over-priced Fed tightening as reasons for the shift. The upgrade was funded
partly by trimming US equity exposure; BlackRock cut US equities to neutral
while increasing allocations across maturities but retaining a preference for
short-duration Treasuries. Strategists said yields have repriced to levels
consistent with their long-held view of relatively higher rates, and they seek
to lock in attractive income.
