Upgrading U.S. Treasuries to lock in income

Higher yields and potentially excessive Fed tightening expectations create room to unwind our U.S. Treasury underweight, a mainstay for most of the last six years. Wei Li, Global Chief Investment Strategist at BlackRock, explains why we upgrade Treasuries, favoring short-term bonds, and take profits on U.S. equities, downgrading to neutral to manage potential volatility around the AI buildout.