Pimco Adjusts Position on Long US Bonds Amid Rising Yields
Pacific Investment Management Co., or Pimco, is trimming its underweight position in long-term U.S. Treasury bonds as yields rise above 5%, marking a shift from recent bearish stances driven by fiscal concerns. The firm's chief investment officer, Daniel Ivascyn, noted that the current yield levels offer better value for investors with longer time horizons and highlighted rising inflation risks due to ongoing conflict in the Middle East. Pimco is adopting a more balanced approach across U.S. government debt maturities as global bond markets experience selloffs. The firm has reduced its bullish stance on intermediate-term Treasuries while also scaling back bearish positions on long-dated bonds, reflecting confidence in current yield levels despite ongoing fiscal challenges. The Pimco Income Fund has slightly declined this year but continues to outperform most of its peers over multiple time horizons. Ivascyn emphasized that rising borrowing costs and increased government debt issuance present opportunities for fixed-income investors.
Topics: inflation concerns interest rates Pimco strategy shift Treasury yields