Bond firm Pacific Investment Management Co added longer-term U.S. Treasury securities to its portfolio this week and also sold some investments tied to volatility against the backdrop of stable economic growth and a slow-moving Federal Reserve, Dan Ivascyn, group chief investment officer, said on Friday.
"We felt recent bearish sentiment was a bit too extreme" in the bond market as reflected in the jump in yields, Ivascyn said in a telephone interview. Ivascyn said moderate growth, low inflation, a cautious U.S. central bank, limited policy traction in Washington and continued global central bank accommodation "will support lower, range-bound rates."
Ivascyn added that the email controversy involving the son of U.S. President Donald Trump "is one of many distractions that will make it a bit more difficult to pass meaningful legislation impacting the economy."
Ivascyn's views and opinions are widely followed as he helps oversee one of the largest asset management firms in the world.