Pimco shifts stance on Japanese bonds as yields rise

Pimco has shifted its position on Japanese government bonds, moving from underweight to neutral as yields reach multi-year highs. The firm sees value in 30-year bonds amid expectations of continued interest rate hikes by the Bank of Japan. Japan's inflation is rising, impacting bond prices and prompting investors to reconsider their strategies. Pimco's Sachin Gupta noted that the recent increase in rates aligns with earlier expectations, leading to profit-taking and reassessment of market conditions. Gupta also expressed interest in gilts and Australian government debt, anticipating lower interest rates in those markets. Meanwhile, he remains underweight on European rates due to increased spending plans in Germany.