US debt reckoning escalates sharply as top bond buyer pulls back from long-term Treasuries
Pimco said it’s reducing exposure to long-term U.S. bonds amid concerns about soaring federal deficits and debt. Instead, it favors shorter-term bonds, some overseas issuers, and corporate debt.
Bond giant Pimco significantly ramped up a market backlash against soaring U.S. debt by announcing plans to reduce exposure to long-term Treasuries.
In a note on Monday, the world’s biggest active bond fund manager referenced “bond vigilantes,” a term coined by Wall Street veteran Ed Yardeni in the 1980s, describing traders who protest massive deficits by selling off bonds to push yields higher.
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