Aug. 9 (Bloomberg) — Investors should be wary of a steepeningyield curve in the U.S. Treasury market, according to PacificInvestment Management Co.'s Mohamed El-Erian.
While yields on government securities due in eight years andless are anchored by Federal Reserve monetary policy, bond buyersshould be wary of longer-maturity debt, El-Erian, the chiefexecutive officer of the world's largest manager of bond funds,said in a “Bloomberg Surveillance” radio interview with Tom Keeneand Ken Prewitt.
“What we would caution is rather the level of the rates, theshape of the curve,” El-Erian said. “The long end is exposed to alot more risk.”
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