Yield Drop in the Euro Area Not Probable, Says Spies
Many of the titans of the bond-investing world are predicting -- and, more importantly, actually gearing up for -- a pickup in inflation. Pioneer Investment Management, for instance, is setting up the first-ever global inflation-linked bond fund in its 88-year history. Partly with that same threat in mind, Pacific Investment Management Co. is cutting the duration of the bonds it holds in its $63 billion Income Fund. This time will be different than those previous episodes, they say, because fiscal policy rather than monetary policy will serve as the principal driver of higher prices. Citigroup Euro Rates Strategist Michael Spies discusses with "On the Move" host Guy Johnson.