PIMCO said it was bullish on the performance of long-term bonds:
- continue to favour long-term bonds over the next year, as they provide high yields not seen for over a decade while offering a cushion against economic uncertainty
- and expectations inflation has peaked
More:
- U.S. economic growth is expected to slow the remainder of 2023 and next year, "hovering between stagnation and mild recession,"
- said much of this year's resilience was due to fiscal support, with deficits widening and U.S. households still benefiting from pandemic-related stimulus measures
- but it sees that support waning next year at the same time as inflation keeps eroding households' excess savings
- "As fiscal support fades, the drag from tighter monetary policy will intensify,"
Adds also:
- Core U.S. inflation is likely to be in the 2.5%-3% area by the end of next year
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Pacific Investment Management Company (PIMCO) is an investment management firm.
US 10 year yield daily chart.
I posted this last week, since then events have conspired to title the answer tentatively to 'yes':
