Bimco softens U.S. bond stance amid over 5% yields

PIMCO has downgraded its negative outlook on U.S. Treasury bonds after long-term bond yields surpassed the 5% level, adopting a more balanced strategy towards government debt. The Chief Investment Officer explained that the firm is shifting away from its previous optimism about five- to seven-year bonds, as tensions in the Middle East and their impact on oil prices persist, along with rising inflation, which is expected to prolong the cautious outlook until the end of the year. However, yields above 5% are considered more attractive to long-term investors, especially with the Federal Reserve continuing to raise interest rates to curb inflation.

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