PIMCO's attitude towards Australian bonds is becoming more and more constructive, believing that in the face of a slowdown in the local economy, market expectations for interest rate hikes are too high. Adam Bowe, head of Australian portfolio management at PIMCO in Sydney, said that Australia's interest rate hike cycle has been “fully reflected in market prices” and that cracks in the economy are showing. He said on Bloomberg TV on Monday that this makes Australian bonds look very attractive, especially in the 5 to 10 year yield curve. “Australian bonds themselves are very attractive, and they are more attractive compared to other markets,” Bowe said. He also said that the Federal Reserve and the Bank of Australia “are trying to bring the inflation rate back to the target level without damaging the economy, but I think the economic rift here is even more obvious.”

PIMCO's attitude towards Australian bonds is becoming more and more constructive, believing that in the face of a slowdown in the local economy, market expectations for interest rate hikes are too high. Adam Bowe, head of Australian portfolio management at PIMCO in Sydney, said that Australia's interest rate hike cycle has been “fully reflected in market prices” and that cracks in the economy are showing. He said on Bloomberg TV on Monday that this makes Australian bonds look very attractive, especially in the 5 to 10 year yield curve. “Australian bonds themselves are very attractive, and they are more attractive compared to other markets,” Bowe said. He also said that the Federal Reserve and the Bank of Australia “are trying to bring the inflation rate back to the target level without damaging the economy, but I think the economic rift here is even more obvious.”