News Pricer.lt

The market overestimates the extent of interest rate cuts (traders.lt)

Rinka pervertina palūkanų mažinimo mastą (traders.lt)

Pacific Investment Management Co. (PIMCO)'s Daniel Ivascyn believes that the bond market's expectations of an easing of US monetary policy have gone too far, reports Bloomberg.

The bond market is taking into account interest rate cuts in the US this year totaling 115 basis points. This means that at least one of the three remaining meetings would require a 0.5 percent cut. Market expectations for the next 12 months are for a total reduction of more than 240 basis points.

Bloomberg points out that interest rate cuts of this magnitude have rarely occurred in periods other than recessions.

"We think the markets may have gone too far in expecting a cut in the near term," said Daniel Ivascyn, head of Pimco Income Fund, the world's largest actively managed bond fund.

"There is some risk that inflation will pick up over the next few months, which could lead to a smaller cut than the market expected," he added.

Pacific Investment Management Co. (PIMCO) revealed that it has reduced exposure to the "very short end of the yield curve," meaning one- and two-year bonds. He prefers five-year debt securities.

News source

Dalintis:
0 0 balsai
Straipsnio vertinimas
guest
0 Komentarai
Seniausi
Naujausi Daugiausiai įvertinti
Inline Feedbacks
Rodyti visus komentarus

Taip pat skaitykite: