BlackRock Fund Bets Inflation Surge Will Hurt German Bonds

A BlackRock Inc. fund has added to bearish positions on German bonds, betting that a “pretty large inflation uptick” across Europe will push borrowing costs back above the 15-year highs reached last week.

Tom Becker, who manages the $6.5 billion Tactical Opportunities Fund, expects governments to increase spending in order to help euro-area households deal with higher energy prices, and to boost military capacity. That’s led him to increase his short position in 10-year and five-year German bunds since the war started in Iran a month ago. He was already short the 30-year maturity.