Finance
PIMCO says UK is largest overweight in global bond fund
Published by Global Banking & Finance Review®
Posted on April 2, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 2, 2025
1 min readLast updated: January 24, 2026
PIMCO favors UK bonds, expecting more BoE rate cuts than markets predict. UK bonds stabilized post-January selloff, with fiscal policy impacting growth.
LONDON (Reuters) - The UK is PIMCO's largest overweight position in its global bond fund because the Bank of England is likely to cut rates more than markets anticipate, global fixed income CIO Andrew Balls said on Wednesday.
UK government bonds have stabilised after a sharp selloff in January triggered in part by concerns about the country's rising debt levels.
"My thinking is that the level of terminal rates are somewhat mispriced in the UK, so it makes sense to have the position and be patient," Balls told a conference in London.
Peder Beck-Friis, an economist at the bond giant, said he expected tight fiscal policy from Britain's government at a time when growth is already weak to weigh on the UK economy further, adding more pressure to the BoE to cut rates faster going forward.
(Reporting by Yoruk Bahceli; editing by Dhara Ranasinghe)
The article discusses PIMCO's overweight position in UK bonds, expecting more rate cuts from the Bank of England.
PIMCO believes the Bank of England will cut rates more than the market expects, making UK bonds attractive.
UK's tight fiscal policy and weak growth are expected to pressure the BoE to cut rates faster.
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