BlackRock shifts to buying Treasuries with yields above 5%, betting Fed rate hikes are overdone.

BlackRock Investment Institute reversed its underweight stance on U.S. Treasuries, upgrading short-term bonds to overweight and long-term bonds to neutral due to attractive yields above 5%. This shift, funded by reducing its U.S. equity holdings from overweight to neutral, reflects BlackRock's view that the market has overestimated future Federal Reserve rate hikes. The institute sees Treasury yields rising further before returns turn negative, but warns that continued Fed tightening, especially driven by oil price shocks, could undermine this trade. Investors should watch the Fed's upcoming decisions closely, as they will impact bond prices and risk levels, particularly for long-term Treasuries.

As of Oct 13, 2026 21:41 WIB, the iShares 1-3 Year Treasury Bond ETF (SHY) trades at USD 81.19 with a slight 1-day gain of 0.02% on Pluang. Meanwhile, the iShares 20 Plus Year Treasury Bond ETF (TLT) is priced at USD 78.38 and shows a stronger 1-day increase of 0.42%. These price movements occur alongside high sell activity for SHY and moderate buy interest for TLT, reflecting cautious investor positioning in U.S. Treasuries on Pluang.