Inflation is here BlackRock Inc. has turned neutral from overweight on U.S. inflation-linked bonds after the recent rebound in inflation expectations. The world’s largest asset manager has also cut its short positioning in Treasuries.
BlackRock Cuts Inflation-Haven Bond Bet, Stays Bullish on Stocks
Nevertheless, it’s harder to dismiss inflation risks given the positive surprises in recent economic reports.
“All of the better data points to a higher-inflation narrative that the market is reflecting,” said Rob Daly, director of fixed income for Glenmede Investment Management in Philadelphia