BlackRock has further cut its view on U.S. Treasuries
- Citing rising economic growth, wages & inflation
- These likely to continue to hurt long-term U.S. government debt in particular
- More widely - rates globally are liable to recalibrate to reflect this 'reflationary' dynamic in 2017, pushing yields upward, causing pain for holders of long-duration bonds
- Steepening yield curves suggest investors should consider pivoting toward shorter-maturity bonds
- Preserving liquidity & otherwise preparing for increased bond market volatility
- BlackRock has been on Treasuries since (northern) summer, downgrading now to "underweight"
- Negative outlook for the coming three months
More:
Raises its outlook for Japanese stocks
Cites:
- weaker yen
- better global growth
- "shareholder-friendly corporate behaviour
- Supportive central-bank policies
Lowered its view on European corporate debt
- Says its expensive
- Also cites risks in the Italian banking sector
