Pimco Takes Contrarian View as Market Bets on Global Rate Hikes

Pacific Investment Management Co. is touting “opportunities to invest against the prevailing narrative” as war in the Middle East and a hawkish shift in expectations for global central banks rattles markets.

Pimco favors exposure to more interest-rate sensitive global bonds amid one of the worst selloffs in debt markets worldwide since October 2024 this month. That’s because, with oil prices soaring because of the conflict, the risk of a resurgence in inflation has prompted traders to prepare for possible interest-rate increases in the UK, Europe and the US later this year.