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Pimco Favors Australian Bonds, Betting on Rate Cuts Next Year

Pimco Favors Australian Bonds, Betting on Rate Cuts Next Year
Bloomberg Markets Wednesday 17 June 2026, 22:31 UTC By Matthew Burgess, Chris Bourke 1 min read
Key Points

Bonds Pimco Favors Australian Bonds, Betting on Rate Cuts Next Year Pacific Investment Management Co. is favoring five- to 10-year Australian debt, wagering the central bank will ultimately be forced to pivot to interest rate cuts to support a slowing economy. Adam Bowe, Pimco’s head of Australian portfolio management, said it will become “very clear” by year-end that the domestic economy is slowing and inflation is heading back toward the Reserve Bank of Australia’s target. He expects the...

Bonds Pimco Favors Australian Bonds, Betting on Rate Cuts Next Year Pacific Investment Management Co. is favoring five- to 10-year Australian debt, wagering the central bank will ultimately be forced to pivot to interest rate cuts to support a slowing economy. Adam Bowe, Pimco’s head of Australian portfolio management, said it will become “very clear” by year-end that the domestic economy is slowing and inflation is heading back toward the Reserve Bank of Australia’s target. He expects the RBA to begin cutting rates in the second half of 2027, making Australia’s federal and state-government bonds maturing in five to 10 years attractive.
Pimco Favors Australian Bonds (ORG) Betting on Rate Cuts (ORG) Australian (ORG) Pacific Investment Management Co. (ORG) Adam Bowe (PERSON) Pimco (ORG) the Reserve Bank of Australia (ORG) RBA (ORG) Australia (LOCATION)
Originally published by Bloomberg Markets Read original →

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