Treasury Yields Too High Even After Rally, PGIM’s Peters Says
(Bloomberg) -- “The bias is not for higher rates, but for lower rates,” Greg Peters, senior investment officer at Prudential Financial Inc.’s fixed-income investing unit PGIM, says in an interview.
- “We still think rates are too high” as 10-year U.S. yield falls to lowest level since February; the benchmark may decline to 2.1 percent this year, Peters says
- Peters co-manages the $21.7 billion Prudential Total Return Bond Fund; biggest stakes as of Feb. 28 include five- and 10-year Treasury futures
- He has less confidence in a flatter yield curve as Fed officials discuss reducing the bank’s balance sheet
- Market had too much enthusiasm for stronger economic growth and inflation; expects price growth to subside in the months ahead
- Sees “better value” in some EM currencies; trimming long MXN positions after rally last month
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HALISTER1Source: BFW (Bloomberg First Word)
Tickers PDBAX US (Prudential Total Return Bond Fund)
People Gregory Peters (Prudential Financial Inc)
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