Blackrock turn tactically neutral long-term Treasuries from underweight

<p> BlackRock Investment Institute say that after being underweight long-term U.S. Treasuries since late 2020, as we saw
the new macro regime heralding higher rates, they've tweaked their view:</p><ul><li>U.S. 10-year yields at 16-year highs
show they have adjusted a lot – but we don’t think the process is over. </li><li>We now turn
tactically neutral as policy rates near their peak. </li><li>The next step is not overweight: we
see investors demanding more compensation for bond risk and stay underweight
on a long-run, strategic horizon. </li><li>We downgrade high grade credit further</li></ul><p>And:</p><ul><li>We now see about equal odds that Treasury yields swing in either direction. In other words, we see two-way volatility ahead.
</li><li>The Fed is likely nearing the end of its fastest hiking cycle since the 1980s after raising rates into restrictive
territory. </li><li>We still see the Fed holding policy tight to lean against inflationary pressures.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.