BlackRock Says the Market Has the Fed Wrong. It’s Buying Treasuries With Yields Above 5%
BlackRock Investment Institute upgraded shorter-term Treasuries to overweight and long-term Treasuries to neutral, citing higher yields. The move was funded by reducing U.S. equity exposure. The institute believes markets have overestimated Fed tightening and sees potential for further yield increases. iShares 1-3 Year Treasury Bond ETF (SHY) and iShares 20+ Year Treasury Bond ETF (TLT) reflect these views, with SHY yielding 3.63% and TLT yielding 4.99%.

