Aug. 9 (Bloomberg) — Investors should be wary of a steepening yield curve in the U.S. Treasury market, according to Pacific Investment Management Co.'s Mohamed El-Erian.
While yields on government securities due in eight years and less are anchored by Federal Reserve monetary policy, bond buyers should be wary of longer-maturity debt, El-Erian, the chief executive officer of the world's largest manager of bond funds, said in a “Bloomberg Surveillance” radio interview with Tom Keene and Ken Prewitt.
“What we would caution is rather the level of the rates, the shape of the curve,” El-Erian said. “The long end is exposed to a lot more risk.”
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