BlackRock downgrades US Treasuries, upgrades peers ahead of election

Top asset manager BlackRock Inc on Monday downgraded US Treasuries and upgraded their inflation-linked peers ahead of the US 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.”