PIMCO sees scope for new bond advance

PIMCO and its global economic adviser Joachim Fels appear very positive about the outlook for Greek bonds, even though the country’s paper has already recorded an impressive rally over the last seven months.

In the annual presentation of its global economic outlook, PIMCO, one of the world’s leading capital managers, said investment opportunities among eurozone periphery bonds are generally huge, thanks partly to their comparatively higher yields.

The presentation took place at a time when Greek bond yields are hitting all-time lows, with the benchmark 10-year rate falling to 0.88 percentage points on Thursday.

Asked by Kathimerini about the factors behind the rally and the outlook for Greek bonds, Fels said this performance reflects the general belief in the market, which PIMCO shares, that despite the shock to the Greek economy from the pandemic, the environment has become more stable thanks to European authorities’ timely action.