BlackRock said the U.S. sold euros to support the yen without notifying 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 s

BlackRock said the U.S. sold euros to support the yen without notifying 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.