BlackRock Downgrades US Treasuries; What It Means for Bitcoin?

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BlackRock downgraded its ratings of the US Treasuries even as the government debt emerged as a haven during this week’s stock market sell-off. The world’s largest asset manager took the bold call after interpreting a clear Democratic win for in the November 3 presidential election in the US. Its strategists noted that a Joe Biden leadership would grow the likelihood of a sizeable fiscal package. Such a scenario would prompt the market to expect higher inflation. “This is why, tactically, we are downgrading nominal US Treasuries and upgrading their inflation-linked peers,” said strategists Mike Pyle, Beata Harasim, and Scott Thiel, along with researcher Elga Bartsch. New York-based BlackRock handles $7.8 trillion worth of assets under management, with fixed-income investments covering 68 percent of their overall portfolio. The firm stated that investors have no benefit in holding nominal government debts, mostly as its yields stay meager. “Such low rates reduce the…

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