PIMCO senior advisor Rupert Harrison says U.S. Treasury yields now look like good value after a sharp run-up this week pushed long-dated yields to their highest levels in 24 years. He points to inflation worries and high fiscal deficits as the drivers, and says PIMCO has built exposure to duration, noting that bond markets would hold value in the event of a tech-stock selloff or economic slowdown.
U.S. Treasury yields are good value, says PIMCO senior advisor Rupert Harrison, after a surge this week pushed 10- and 30-year yields to fresh 24-year highs.
Mounting concern over inflation and high fiscal deficits has driven borrowing costs to their highest levels in years. Harrison made the case during a panel at a TS Lombard event in London, according to Reuters: "screaming good value to us".
PIMCO holds exposure to duration, Harrison added, noting that bond markets would hold value in the event of a selloff in tech stocks and any future slowdown in the economy.
Source: Economy News
Trading involves risk.
Risk Disclaimer
