BlackRock Urges Bond Cuts As 30-Year Treasury Yield Hits 5.14%
BLK•BlackRock has advised clients to cut developed-market government bond exposure as 30-year Treasury yields near 5.14%, forecasting further term premium pressures. The SEC’s proposed innovation exemption could allow tokenization of stocks without issuer consent by end-2026, potentially paving the way for BlackRock’s expansion of blockchain-based equity products.
1. Bond Exposure Guidance
BlackRock’s fixed income team highlighted that 30-year Treasury yields approaching 5.14% represent elevated term premium risk, recommending clients reduce allocations to developed-market government bonds and increase exposure to equities and other higher-yielding asset classes.
2. Tokenization Exemption Impact
Under the SEC’s proposed innovation exemption, third parties could issue tokenized versions of stocks without issuer participation, creating opportunities for BlackRock to deploy blockchain-based equity products while also raising questions around supply fragmentation and investor protections.
