ReutersAnalysis: Bond managers in the United States believe the market has overshot and that yields are excessively low. Despite the recent drop in Treasury yields, which they see as a temporary shift, investors at some of the largest U.S. asset managers are sticking to their belief that bond yields will rise in the second half of this year. Longer-dated U.S. government bond yields have been pushed lower by an unwinding of short bets against Treasury paper, as well as mounting concerns about the job market’s recovery and the spread of the Delta strain of the coronavirus. However, major U.S. bond managers such as BlackRock, PIMCO, DoubleLine, and TCW continue to expect the recovering economy to drive growth and inflation, even if at a slower rate in the second half of this year, and to send yields higher once more./n
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