BlackRock, the world's largest asset manager, has shifted its investment focus from US Treasuries to European government bonds, upgrading its view on European bonds from slightly underweight to neutral. This strategic move is driven by attractive yields and a rising term premium in European bonds compared to US debt, amid concerns over persistent inflation and high budget deficits in the US. BlackRock's strategists particularly favor bonds from Italy and Spain. In parallel, Goldman Sachs has adjusted its forecasts for US Treasury yields, anticipating earlier interest rate cuts by the Federal Reserve. The Financial Times reported a significant $11 billion sell-off in US long-term bond funds during the second quarter, ending a three-year trend of net inflows.