U.S. bond manager PIMCO believes it’s premature to declare victory over inflation and warns of persistent recession risks. Despite market expectations for a soft landing, PIMCO anticipates bonds to outperform stocks in 2024 in case of a recession, providing a cushion against inflation re-acceleration.
While neutral on duration after a recent bond-market rally, PIMCO notes potential weakness in long-term bonds due to concerns about widening U.S. fiscal deficits and increased government bond issuance.
