Bonds
Pimco Sees ‘Vigilance Before Vigilantism’ on Rising US Deficit
- Bond giant has been reducing long-dated Treasury purchases
- Report warns excess borrowing may cause lenders to flee
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Pacific Investment Management Co. says it’s “less inclined” to purchase Treasuries with extended maturities in light of ballooning US deficits, shooting across the bow of a profligate Washington.
The Newport Beach, California-based bond investor, which manages $2 trillion in assets, has been “reducing allocations to longer-dated bonds,” preferring short-to-medium dated Treasuries, managing directors Marc Seidner and Pramol Dhawan wrote in a paper released Monday.