BlackRock Chairman and CEO Larry Fink told CNBC on Wednesday he sees bond yields under pressure in the short term as stocks motor ahead.
"There's a high probability that bonds are going to stay in a very narrow range for some time until we start seeing some real growth that will force behaviors of different central bankers," he said on "Squawk Box" from the Business Roundtable's meeting in Washington, D.C.
Fink predicted the yield on the 10-year Treasury in the 2 percent to 2.5 percent range. But with a bunch of insurance companies possibly needing to cover their gaps, bonds could tick under 2 percent again before year end, he added. "Most insurance companies were predicting higher rates. They had a portfolio that was short their liability. I believe the gap has widened."
"From what we see there's a higher probability of interest rates going down in the short run," he said. "I don't believe they'll stay down that low for the long term." Wednesday morning, the 10-year yield was around 2.287 percent.
At the same time, Fink said there's a high probability of stocks continuing to roll, as lower inflationary pressure from falling oil prices may keep the Federal Reserve "lower, longer" on interest rates.
"We still have great demand for securities, financial assets," he said. "I see a pretty robust picture for the financial markets."
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Lower oil prices 'spectacular event'
Regarding lower oil prices, Fink said he's shocked by people who see the recent drop as a negative. "This is an incredible tax cut for Americans and everywhere else around the world."
But he did recognize the downside to lower oil prices—citing possible destabilizing factors on Venezuela, Iran and Russia as well as making some U.S. oil fracking less profitable.