Yields surged to kick off September. BlackRock spots solid income in this corner of the market

* Treasury yields hit highest levels since 2023 amid inflation and debt concerns. * BlackRock recommends selective credit exposure and TIPS for portfolio income. * Active ETFs like BINC and SECU offer attractive yields with shorter duration. Treasury yields surged, with the 10-year above 4.81% and the 30-year at 5.269%, driven by inflation fears, oil prices, and debt concerns. BlackRock advises investors to be selective in credit risk, favoring investment-grade and high-rated speculative bonds. It highlights opportunities in flexible income ETFs like BINC (5.3% yield, 3.56-year duration) and SECU (5.49% yield, ~3-year duration), which allocate to high-yield credit, mortgages, and securitized assets. TIPS are also recommended for inflation protection and income, with potential for increased inflows through year-end.