Is the U.S Economy Gaining Strength? PIMCO Thinks Not
Even though Treasuries climbed 1.4 percent so far this year, Goldman Sachs Group Inc., JPMorgan Chase & Co. and 20 other primary dealers offered to sell $4.34 of the notes for every dollar the Federal Reserve purchased from the firms in its bond buying program in the past month. Why? Bond dealers are becoming decidedly bullish on the world’s largest economy at a time when investors such as Pacific Investment Management Co. (PIMCO) are questioning the U.S. recovery. But who can blame PIMCO, in the wake of reports on jobs growth, manufacturing and retail sales that fell short of analysts’ estimates. Treasuries started the year with the best January returns since the financial crisis, rebounding from their first annual losses since 2009. So what about you? Do you agree with PIMCO that the recovery isn’t to be believed yet? Or will you fill your coffer with Treasury Bills.