BlackRock says French bond sell-off is a lesson in selectivity, upgrades US Treasuries - investingLive

BlackRock’s view reinforces a theme running through bank research this week: higher yields are now the norm, but the reasons behind them matter more than the level. For euro area bonds, the near-term focus is Moody’s decision on France’s credit rating, with a downgrade likely to pressure French debt and widen the gap over German Bunds. Any spillover selling in markets such as Spain could prove an opportunity if fundamentals hold up, in BlackRock’s view. Its upgrade of US Treasuries signals that the world’s largest asset manager sees value in longer-dated US debt at current yields, which could help cap further rises if other investors follow. A rising term premium driven by fiscal worries remains the main risk that could push yields higher still.