PIMCO shuns gilts on election spending fears

Potential for gilt sales increasing

PIMCO is shunning UK government debt on the view post-election borrowing by the main political parties could pile pressure on gilt prices.

PIMCO's chief investment officer for global fixed income Andrew Balls told the FT gilts are already one of the bond investment giant's "least favourite" markets due to the low yields available, with the potential for gilt sales increasing to fund government spending making them even less attractive. "Gilt yields look too low in general. If you don't need to own them it makes sense to be underweight," Balls told the FT. PIMCO adds to GIS fund range with EMs launch It is thought the election on 12 December could drive the biggest boost to public spending since the mid-1960s, with the...