- Pimco is taking an increasingly constructive stance on Australian bonds, arguing that market expectations for interest-rate hikes have gone too far in the face of a slowing local economy.
- Adam Bowe, head of Australian portfolio management at Pimco, said Australia's rate-hike cycle is fully priced and cracks in the economy are becoming visible.
- Pimco sees value in the five- to 10-year section of the Australian yield curve.
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“Pacific Investment Management Co. is taking an increasingly constructive stance on Australian bonds, arguing that market expectations for interest-rate hikes have gone too far in the face of a slowing local economy.”
“Australia’s rate-hike cycle is “fully priced,” and cracks in the economy are becoming visible, said Adam Bowe, head of Australian portfolio management at Pimco in Sydney.”
“That’s making Australian bonds look attractive, particularly in the five- to 10-year section of the yield curve, he said on Bloomberg TV on Monday.”