×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Pimco | El-Erian | Yield | Curve

Pimco's El-Erian: Be Wary of Steepening Treasury Yield Curve

Thursday, 09 August 2012 12:05 PM

Investors should be wary of a steepening yield curve in the U.S. Treasury market, according to Pacific Investment Management Co.’s Mohamed El-Erian.

While yields on government securities due in eight years and less are anchored by Federal Reserve monetary policy, there is “a lot more risk” in longer-maturity debt, El-Erian, the chief executive officer of the world’s largest manager of bond funds, said in a “Bloomberg Surveillance” radio interview with Tom Keene and Ken Prewitt.

The difference in yields between two- and 10-year Treasurys widened to 1.42 percentage points, or 142 basis points, the most since May.

Investors often demand a bigger yield premium on longer-maturity debt to guard against the risk that inflation will erode the value of fixed payments from the securities over time.


© Copyright 2022 Bloomberg News. All rights reserved.


126
2012-05-09
Thursday, 09 August 2012 12:05 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved