BLACKROCK BETS ON RISING EUROPEAN YIELDS BlackRock is increasing short positions on German bonds, expecting a sharp rise in inflation to push yields above recent 15-year highs. The firm sees higher government spending on energy support and defense driving more debt issuance, increasing bond supply and borrowing costs. With Europe heavily exposed to energy shocks, inflation risks are seen as greater than in the US or UK. BlackRock expects German 10-year yields to climb further from around 3%. The shift in outlook—fewer rate cuts and potential hikes—has already paid off, with the fund outperforming peers as global yields rise.(*Walter Bloomberg)