Pimco Reduces Long-Term US Debt Holdings Amid Rising Deficits

Pimco, a major US bond fund manager, is reducing its exposure to long-term US government debt due to concerns over rising deficits and potential inflation under Donald Trump. The firm is opting for shorter-term notes to avoid greater interest rate risks, as the US federal budget deficit has increased to $1.8 trillion. Pimco's decisions are closely watched as they can influence global financial markets. The firm is also diversifying its bond investments internationally, citing the UK and Australia as more fiscally stable options.