Pimco says bond yields remain attractive as term premium rises

Pimco, one of the world's largest bond investors, says long-term government bond yields are likely to stay high. This creates good opportunities for investors who want steady income.

The 30-year US Treasury yield has climbed to its highest level in nearly 20 years. Long-term yields in Europe, the UK, and Japan have also risen. This happens because investors want extra payment for holding bonds over a long period instead of short-term options. Rising government debt has pushed these yields higher.

Pimco's leaders say they will buy more bonds if yields keep rising. They expect these high yields to continue unless the economy slows down sharply. Higher yields allow investors to earn more from bond payments and move money away from cash.