Unwinding of "crowded trades" creates a buying window! Fixed-income giant Pimco shifts from underweight to overweight in European bonds, ready to "sweep the market".
Following the sharp sell-off of European government bonds due to the impact of the Middle East conflict, Pimco, a global fixed-income investment giant, is purchasing these bonds.
The European Central Bank is expected to remain on hold this Thursday, potentially marking the end of its easing cycle, with discussions about interest rate hikes surfacing.
As the Eurozone economy withstands trade shocks and inflation stabilizes, the likelihood of a near-term interest rate cut by the European Central Bank appears to be diminishing. With economic data surpassing expectations, market focus is shifting from 'when to cut rates' to 'whether the next move will be a rate hike.'
No Sign of ECB Pivot to Faster Easing, Says Citi