PIMCO trims 2024 Fed rate cut expectations to 2 after jobs report
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U.S. bond giant PIMCO has revised its expectations for interest rate cuts by the Federal Reserve in 2024 to two, down from the previous estimate of two to three cuts. The revision comes after data showed that the U.S. economy created more jobs than expected in March. U.S. nonfarm payrolls grew by 303,000 jobs, surpassing expectations for an increase of 200,000. PIMCO's managing director and generalist portfolio manager, Mike Cudzil, stated that the economy's resilience to high interest rates suggests that it can handle higher rates. As a result, U.S. Treasury yields rose, and expectations for a rate cut in June decreased from 59% to 51%. PIMCO has been underweight duration in portfolios, as it believed the market was too optimistic about rate cuts. Traders initially expected 150 basis points of cuts in 2024, but that has now been revised down to 67 basis points, aligning with PIMCO's expectations. Cudzil mentioned the possibility of getting overweight on duration in the future.



https://www.tradingview.com/news/reuters.com,2024:newsml_L2N3GE1GJ:0-pimco-trims-2024-fed-rate-cut-expectations-to-2-after-jobs-report/