Pimco trims underweight on long-term US Treasuries as yields exceed 5%
Summary
Pimco has announced it will reduce its underweight position on long-term US Treasuries, attributing this decision to yields surpassing 5%. This adjustment comes as a result of a global selloff that has pushed longer-dated US Treasury yields to their highest levels in twenty years, prompting fixed-income managers to adopt more balanced strategies across various Treasury maturities.
Analysis
Pimco: Pimco is a leading global investment management firm specializing in fixed-income securities and credit markets. Its chief investment officer recently indicated that long-term US Treasury yields above 5% are prompting the firm to trim its underweight position on those bonds as part of a broader shift toward a more balanced allocation. Yield Environment: A global selloff has driven longer-dated US Treasury yields near their highest levels in two decades. Portfolio Adjustment: Fixed-income managers are adopting more balanced approaches across different Treasury maturities amid shifting yield levels.
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Related sources
- https://www.bloomberg.com/news/articles/2025-01-14/pimco-says-own-more-bonds-as-trump-ushers-in-era-of-uncertainty
- https://www.bloomberg.com/news/articles/2026-06-18/pimco-targets-out-of-date-assets-in-new-real-estate-strategy
- https://thelondonreview.org.uk/articles/2026-06-29-the-bond-giant-going-private-how-pimco-is-redrawing-the-credit-map
- https://www.businesswire.com/news/home/20260918184072/en/PIMCO-Canada-Corp.-Announces-Monthly-Distributions-for-PIMCO-Canada-Closed-End-Funds
- https://www.itiger.com/news/1103872602
- https://www.youtube.com/watch?v=cq9LTeiwcKw
- https://www.bloomberg.com/news/articles/2026-09-22/pimco-trims-underweight-on-long-us-bonds-as-yields-top-5
- https://www.linkedin.com/company/pimco
- https://longbridge.com/en/news/274108472