Weekly commentary: Immutable laws keeping us risk-on

BlackRock Investment Institute’s weekly commentary explains why “immutable” debt and inflation constraints may limit policy extremes, keeping their pro-risk stance intact.

• Fed independence concerns have lifted term premia, leaving 10-year Treasury yields stuck around 4.10%–4.20% despite rate cuts, supporting an underweight in long-duration US bonds.

• The AI mega force remains a key equity driver; BII prefers equities over government bonds and stays selective across regions.

• With muted markets and limited data, attention turns to global flash PMIs and Japan’s snap election as potential catalysts for global bond yields.

Explore the full commentary for tactical views, scenario-based portfolio guidance and positioning across major asset classes.