Pimco Favors 5- to 10-Year Australian Bonds as It Bets on RBA Cuts in 2027
Updated
Updated · Bloomberg · Jun 17
Pimco Favors 5- to 10-Year Australian Bonds as It Bets on RBA Cuts in 2027
1 articles · Updated · Bloomberg · Jun 17
Summary
Pimco is overweighting Australian federal and state bonds maturing in five to 10 years, positioning for the Reserve Bank of Australia to start cutting rates in the second half of 2027.
Adam Bowe, Pimco’s head of Australian portfolio management, said by year-end it should become clear that Australia’s economy is slowing and inflation is moving back toward the RBA’s target.
That outlook underpins Pimco’s preference for the belly of the Australian yield curve, where it expects bond prices to benefit most once policy shifts from restraint to support.
The bet hinges on a sharper domestic slowdown than current policy settings imply, making Australia one of the markets where Pimco sees room for a later but meaningful easing cycle.