PIMCO maintains positive outlook on UK gilts as yields rise

PIMCO, a major bond investor, remains optimistic about UK government bonds despite a recent market sell-off. They noted that rising yields are largely influenced by the U.S. Treasury market. The UK’s 10-year government bond yield reached 4.925%, the highest since 2008. PIMCO indicated that increased borrowing costs may lead to new savings measures from the British finance minister. Many investors, including PIMCO, expect that slowing economic growth could prompt the Bank of England to lower interest rates more than anticipated.