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The Japan Times
Pimco expects elevated term premium, says bonds are attractive
Pimco projects that the demand for higher returns on long-dated government bonds will persist, offering buying opportunities for investors. With rising yields across major economies, they maintain that these bonds present favorable conditions for long-term investment. However, fiscal pressures and inflation remain as potential risks, impacting the overall market sentiment.
Act nowConfidence: HighShort term horizon
Published 24 Aug 2026, 03:45 UTC2 min read
Visit original article ↗Lead image — The Japan Times
Summary
TL;DR
- Term premium for long-dated bonds expected to stay elevated
- 30-year U.S. Treasury yield reaches two-decade highs
- Pimco recommends bond investments as yields rise
- Fiscal pressure and inflation concerns loom over markets
- Historical averages suggest current yields are appealing
Interesting facts
- U.S. national debt surpasses $40 trillion
- Billionaire Ray Dalio warns about a potential U.S. debt crisis
- Recent fiscal stimulus could worsen government debt supply expectations