BOSTON (Reuters) – Top asset manager BlackRock Inc (N:) on Monday downgraded U.S. Treasuries and upgraded their inflation-linked peers ahead of the U.S. election.
In a research note BlackRock said that it took the step for tactical reasons.
“Markets are increasingly reflecting a unified Democratic government outcome that may lead to a significant fiscal expansion,” Blackrock said. “This electoral outcome would bring forward the market pricing of the higher inflation regime that we were already reflecting in our strategic asset views.”
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