Reported 7 months ago
PGIM Fixed Income remains firm in its underweight position on Treasuries, believing the market is too confident in high policy rates bringing inflation down. Head of global bonds at the firm, Robert Tipp, suggests that if core inflation continues to rise, the Fed may shift from an easing to a hiking bias. Despite increasing bets for rate cuts, Tipp expects the yield on 10-year US Treasuries to reach 4.5% this year, emphasizing a slower pace of rate cuts and favoring high-grade corporate bonds and sovereign debt of select countries for relative value.
Source: YAHOO