The 10-year US yield is expected to generally move higher throughout the course of this year as yields are down at pretty close to the absolute low-end of the range, said Scott Mather, chief investment officer of US core strategies at PIMCO. Domestic inflation expectations are likely to start rising as it has hit the low point in terms of …
One Man’s Opinion: The US Fed Is Focused On Wage Inflation; But Will They Remain Accommodative?
The recent market rally that took place, after the minutes from the Fed’s last FOMC meeting were published, was kind of a relief rally because most participants had expected the hawks to get their message out, like it happened on earlier occasions, said Scott Mather, deputy chief investment officer at Pacific Investment Management Co. What the markets saw instead was …
One Man’s Opinion: Does US And European Corporate Credit Still Look Attractive?
10-year US Treasury yields have remained range-bound since June last year and the trading range has been very clear, varying between 2.5 and 3 percent, suggesting borrowing is back, said Anthony Crescenzi, a portfolio manager at PIMCO. The US economic growth is expected to accelerate to about 2.8 percent this year from the low twos that has been the norm …
One Man’s Opinion: Is The Federal Reserve Likely To Initiate Tapering In September?
US July nonfarm payrolls data came in at 162,000, well below the 200,000 forecasted by most economists, and showed the labor market continues to improve, but at a frustratingly slow pace, said Mohamed El-Erian, chief executive officer and co-investment officer at PIMCO. Internal factors like earnings, long-term unemployment rate, labor participation rate and youth unemployment rate indicate the situation is …
Can Jobs Data Be Better?
The latest employment data is significant and insightful, believes Mohamed El-Erian, chief executive officer and co-chief investment officer at the $1.8 trillion Pacific Investment Management Co. The report reveals three important developments. First, 171,000 new jobs were created because of two important events; the housing sector stabilizing and better consumer confidence. The second important but less encouraging development; businesses remain …