PIMCO's Amey: Yields are not the whole story for bonds

The future direction of bond yields is less important to the fixed income story than many suspect, PIMCO's Mike Amey has suggested.

Amey, manager of gilt portfolios at PIMCO, noted that for some investors, such as pension funds, yields are not the sole priority. With 10-year gilt yields having fallen from 3% to 2.4% this year, many are now expecting a concerted reversal, but Amey suggested this will have a limited impact on some buyers' thinking. Amey pointed to the long end of the curve as being of particular interest. "Long-rate bonds still have strong appeal as returns are only part of the story for investors looking for low long-term risk in their portfolios," he said. The manager is not alone in specula...