BlackRock redirects resources to Europe’s defense sector: strategic adaptation to the new defense reality in Europe

On July 7, 2025, representatives of the American investment fund BlackRock announced in their weekly report that they are prioritizing Eurozone government bonds and loans over those of the U.S., as these bonds demonstrate high returns, “and the term premium has risen closer to expectations.”

This announcement by BlackRock, favoring European government bonds over American ones, signals a strategic realignment of institutional investors amid a transformed global financial landscape. The company, managing assets worth over $10 trillion, has effectively laid the foundation for a new investment logic.

BlackRock’s decision is based on an assessment of current macroeconomic and monetary risks in the U.S.: the Federal Reserve’s hawkish stance on interest rates, delays in rate cuts, and persistent inflationary pressures driven by the new administration’s tariff policies have increased yield requirements for Treasury bonds, which, in turn, have pushed up the European risk premium.