Treasuries will remain supported next year because they provide good insurance against economic risks, according to Tony Crescenzi, a portfolio manager and strategist at Pacific Investment Management Co.
“Investors will still want bonds,” Crescenzi said in an interview on Bloomberg Television’s ‘Bloomberg Surveillance’ with Tom Keene. “Treasuries provide good insurance against macro risk.”
The Federal Reserve will keep rates low until 2015 or 2016, he said.
“The Fed is anchoring the bond market quite strongly, it will remain a good asset class, meaning one that will give investors comfort,” Crescenzi said. “Pimco is avoiding, or trying to keep a low weighting, on maturities beyond 10 years, because we know the Fed’s intent is to reflate a deflated economy.”
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