“BlackRock Bucks Bets on Plunging Inflation”
December 19, 2022
“BlackRock Inc. strategists say traders that have started to bet on a sharp slowdown in inflation are setting themselves up for disappointment.
While they acknowledge that prices pressures are ebbing faster than expected, they contest consensus bets that see the rate tumbling toward the Federal Reserve’s 2% target. That’s leading the world’s biggest asset manager to recommend being underweight on government bonds in favor of inflation-linked debt and investment-grade credit next year.
Scott Thiel, its chief fixed-income strategist, sees US inflation only easing to 3.50% toward the end of 2023 amid persistent labor shortages, higher wages and falling inventories. That contrasts with one-year consumer-price index swaps at 2.38% and 10-year breakevens at 2.14%…”
https://finance.yahoo.com/news/blackrock-bucks-bets-plunging-inflation-132254257.html