Industry Voice: Surge in Rates May Be Overstating the Case for Inflation

Longer-dated Treasury yields have climbed as markets consider whether economic growth and inflation expectations might accelerate more rapidly. We believe inflation pressures will remain in check and bond yields will be range-bound.

clock • 1 min read

U.S. rates have moved substantially higher in the past few weeks, advancing a trend that's seen Treasury yields rise from historic lows amid the depths of the pandemic last year. As markets try to gauge whether economic growth and inflation could accelerate more quickly than anticipated in 2021, many investors are left wondering whether rates will climb further in the near term. We think upward pressure on inflation is likely to be relatively contained as the global economy continues to recover from the effects of COVID-19, and that yields on longer-dated bonds should stay broadly bounded within recent ranges as central banks keep short-term policy rates anchored near zero.

 

Continue Reading

 

For investment professionals only. PIMCO Europe Ltd (Company No. 2604517) Ltd (Company No. 2604517) and PIMCO Europe Ltd - Italy (Company No. 07533910969) are authorised and regulated by the Financial Conduct Authority (12 Endeavour Square, London E20 1JN) in the UK. PIMCO Europe Ltd services are available only to professional clients as defined in the Financial Conduct Authority's Handbook and are not available to individual investors, who should not rely on this communication.

More on Investment

Tributes paid to 'much-loved and highly-respected' Ruli Viljoen

Tributes paid to 'much-loved and highly-respected' Ruli Viljoen

Inspirational figure in the investment industry

Katrina Lloyd
clock 20 January 2026 • 6 min read
Retail investors trading habits 'astute' and highly active heading into regulatory 'tectonic shift'

Retail investors trading habits 'astute' and highly active heading into regulatory 'tectonic shift'

Inaugural Winterflood retail report

Eve Maddock-Jones
clock 19 January 2026 • 2 min read
Partner Insight: Diversification proves its worth as markets reset

Partner Insight: Diversification proves its worth as markets reset

Vanguard Europe
clock 22 December 2025 • 1 min read
Trustpilot