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BlackRock prefers European government bonds over US Treasuries
BlackRock prefers European government bonds over US Treasuries

Business Times

time08-07-2025

  • Business
  • Business Times

BlackRock prefers European government bonds over US Treasuries

[NEW YORK] BlackRock Investment Institute shifted its view on European government bonds to neutral from slightly underweight, citing the attractiveness of their yields versus Treasuries. 'We prefer euro area government bonds and credit over the US,' strategists including Jean Boivin and Wei Li wrote in a weekly note. 'Yields are attractive, and term premium has risen closer to our expectations relative to US Treasuries.' The strategists see sticky inflation keeping the Federal Reserve from cutting rates far. They also said high fiscal deficits may prompt investors to seek more compensation to hold long-term Treasuries. Treasuries sold off over the past week after posting their best monthly performance since February last month as traders priced in the prospect of Fed rate cuts. Some of those bets have been rolled back after the US reported strong employment data for June. Within the eurozone, BlackRock prefers peripheral bonds such as those from Italy and Spain. BLOOMBERG

BlackRock Prefers European Government Bonds Over US Treasuries
BlackRock Prefers European Government Bonds Over US Treasuries

Bloomberg

time08-07-2025

  • Business
  • Bloomberg

BlackRock Prefers European Government Bonds Over US Treasuries

BlackRock Investment Institute shifted its view on European government bonds to neutral from slightly underweight, citing the attractiveness of their yields versus Treasuries. 'We prefer euro area government bonds and credit over the US,' strategists including Jean Boivin and Wei Li wrote in a weekly note. 'Yields are attractive, and term premium has risen closer to our expectations relative to US Treasuries.'

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