PIMCO, a leading bond investment firm, anticipates an increase in term premiums, signaling a shift in the bond market. This expectation is grounded in concerns over the swelling U.S. deficit, which PIMCO warns could lead to a scenario reminiscent of the 1980s. During that period, bond vigilantes demanded significantly higher compensation to own longer-dated bonds due to fiscal profligacy. The firm's outlook suggests a potential return to such conditions, impacting bond investments.
Pimco is warning that US fiscal profligacy threatens to drag the Treasury market back to 1980s, a time when bond vigilantes demanded far higher compensation to own longer-dated bonds. https://t.co/CsCV2rceDY
Pimco Sees Swelling Deficit Dragging Bonds ‘Back to the Future’ https://t.co/UBPWoMvUwz
US bond giant PIMCO expects term premiums to rise again https://t.co/89OnppOxKi https://t.co/hNeoCWjIHY
U.S. bond giant PIMCO expects term premiums to rise again https://t.co/bBtCqrBNTE
US Bond Giant PIMCO Expects Term Premiums To Rise Again - MS https://t.co/jByHu63Jbs