Pimco Boosts Bond Bets That Fed Will Cut Less Than Global Peers
- ‘Conviction level is certainly higher’ for policy divergence
- One key is that many US home buyers have locked in low rates
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The time is ripe for bond-market bets that the Federal Reserve will lower interest rates less than other major central banks in the next couple years, says Andrew Balls at Pacific Investment Management Co.
Global rates traders currently anticipate a uniform degree of policy easing across most developed nations in that period, totaling around 150 basis points each from the Fed, the Bank of Canada and the Bank of England, with a little more seen from the European Central Bank and the Reserve Bank of New Zealand.