NEW YORK (Reuters) - Dan Ivascyn, the group chief investment officer at bond heavyweight Pimco, said on Wednesday that U.S. Treasuries will continue to be in demand, given the geopolitical risks around the world.
“There are still powerful global forces at work weighing on high quality bond yields,” said Ivascyn, who oversees more than $1.5 trillion in assets under management. “These will not go away overnight.”
Ivascyn said over the last few months, Pimco has been adding higher-quality bond exposure, including Treasuries while reducing risk in other areas of the portfolio.
Wednesday, the yield on the benchmark 10-year Treasury note dropped to 2.35 percent.
Reporting By Jennifer Ablan; Editing by Tom Brown