PIMCO CIO: Fed Tightening Over Inflation Fears

PIMCO CIO Daniel Ivascyn says central banks may tighten policy if long‑dated inflation expectations become unanchored, despite economic weakness.
Treasury breakeven rates hit three‑year highs after oil price surge from a US attack on Iran, pushing 30‑year yields to 2007 levels.
Swap markets nearly price a 0.25% Fed rate hike by year‑end, while equities and credit remain resilient amid rising inflation worries.
Ivascyn notes PIMCO’s $2.3 trillion assets and suggests high‑quality fixed‑income portfolios can still yield 6‑7% despite tightening risks.