Wall Street Warns of Seismic Pension Shift Into Bonds This Month
- Billions of dollars seen flowing to Treasuries as stocks rally
- Pensions’ bond purchases support yield curve flattening: JPM
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The bond bear market, touted by billionaire fund managers Bill Gross and Ray Dalio, is about to run into a multi billion-dollar roadblock.
Strategists across Wall Street, from Credit Suisse Group AG to JPMorgan Chase & Co., predict that the run-up in stocks will spur portfolio rebalancing by U.S. pension funds, driving pent-up demand into bonds as managers shift their more than $7 trillion in assets. While the S&P 500 Index has returned about 6.2 percent since the beginning of the year, 10-year Treasury futures have slumped 1.5 percent, pushing yields to near the highest since 2014. The bond benchmark was little changed in trading Thursday.