Pimco is recalibrating its fixed-income exposure, finding value in 30-year US Treasuries at 5% yields while tempering its bullish outlook on intermediate-term bonds amid ongoing Middle East geopolitical tensions.
Pimco is reducing its underweight on long-term US Treasuries as yields exceed 5%, signaling improved value.
Middle East conflict and efforts to reopen the Strait of Hormuz are pressuring oil prices, supporting a bullish outlook.
Pimco is trimming its bullish stance on five- to seven-year Treasuries, indicating reduced conviction.
Pacific Investment Management Co. is adjusting its bond strategy as long-term US Treasury yields climb above 5%. CIO Daniel Ivascyn noted that the firm is reducing its bearish stance on long-dated debt while simultaneously trimming its bullish position on five- to seven-year maturities to maintain a more balanced portfolio.
Pimco believes that with yields exceeding 5%, much of the fiscal risk is already priced into the market, offering better value for investors with a longer time horizon.