BlackRock has overweighted short-term U.S. Treasuries for the first time in six years and downgraded its rating on U.S. stocks

The world's largest asset management company BlackRock, under the BlackRock Investment Institute, has adjusted its asset allocation in the United States, ending nearly six years of an underweight position on U.S. Treasury bonds. The institution has upgraded the rating of short-term U.S. Treasury bonds to overweight, while the rating for long-term U.S. Treasury bonds has been raised from underweight to neutral. Additionally, the ratings for U.S. stocks and U.S. agency mortgage-backed securities (MBS) have been downgraded from overweight to neutral.

BlackRock strategists stated that current U.S. Treasury yields have risen to attractive levels, and the interest rate swap market's expectation of the Federal Reserve raising rates at least three times in the next 12 months, with each increase of 25 basis points, may be excessive. The downgrade of the U.S. stock rating is mainly to address potential market volatility brought about by the construction of artificial intelligence infrastructure and the recent risk of rising financing costs. However, the institution remains constructive on the long-term investment prospects in AI-related fields. Furthermore, BlackRock has also reduced its underweight position in Japanese government bonds.