BlackRock makes case to own more U.S. TIPS

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BlackRock, the world's biggest asset manager, on Monday recommended investo...

NEW YORK - BlackRock, the world’s biggest asset manager, on Monday recommended investors hold more U.S. Treasury Inflation Protected Securities as the Federal Reserve is expected to refrain from raising short-term interest rates in the coming months.

The U.S. central bank also signaled it is open to allowing inflation to rise above its 2 percent goal to compensate for years that it has missed that desired target level, the company’s global chief investment strategist Richard Turnill said. So far in 2019, TIPS have produced a total return of 1.08 percent, compared with a 0.06 percent loss among regular Treasury bonds, according to indexes compiled by Bloomberg and Barclays.

Investors had also grown worries about further rate hikes from the Fed before policy-makers took a dovish shift at their policy meeting in late January.

 

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