Goldman, Pimco Detect Irrational Inflation Mania in Bonds
- View is that expectations are lower than market measures show
- Analyses have implications for bets on timing of Fed liftoff
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Goldman Sachs Group Inc. and bond titan Pacific Investment Management Co. have a simple message for Treasuries traders fretting over inflation: Relax.
The firms estimate that bond traders who are pricing in annual inflation approaching 3% over the next handful of years are overstating the pressures bubbling up as the U.S. economy rebounds from the pandemic.