Reported about 1 year ago
The BlackRock Investment Institute expressed caution on long-term U.S. Treasuries before the November elections due to wide fiscal deficits, stating that investors will likely require more compensation to hold them. The institute maintains an 'overweight' recommendation for short-term U.S. Treasuries and remains neutral on longer-dated U.S. government bonds, anticipating high inflation and elevated interest rates due to large deficits regardless of the election outcome. Some investors are reallocating funds to hedge against potential losses if Treasury yields surge from supply and demand imbalances, with upcoming Treasury bond auctions closely watched for insight into debt sustainability concerns.
Source: YAHOO