BlackRock's $1.8 trillion bond chief says Wall Street is looking at the wrong thing when it comes to the yield curve

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May 1, 2018 3:17 PM

Rick Rieder, who oversees $1.8 trillion as chief investment officer of fixed income at BlackRock, says the 10-year touching 3% is a big deal but the real story is the at the front end of the curve.

Rick Rieder, who oversees $1.8 trillion as chief investment officer of fixed income at BlackRock, says the 10-year touching 3% is a big deal but the real story is the at the front end of the curve.
Rieder points out that Treasury bills are paying out hundreds of billions of dollars in income a year particularly at the front end. More importantly, the yield on 2-year treasuries is now higher than the S&P 500 dividend yield.
Rieder says inflation is going higher but he is not at all worried about it getting out of control. He also says 2% is clearly not the right inflation target for the Fed.
Rieder says the biggest risk he sees to the market is how things play out with China.

Rick Rieder, the global chief investment officer of fixed income at BlackRock, sat down with Business Insider's Sara Silverstein to discuss his investment outlook. Following is a transcript of the video.

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