Pimco, Abrdn Favor UK Gilts Over Treasuries on Slowdown Risk.

Abrdn Plc and Pacific Investment Management Co. are favoring UK government bonds over US Treasuries due to the increasing risk of a recession. Abrdn has been increasing its exposure to UK gilts, and this view has been supported by data showing a larger than expected slowdown in UK inflation. Money-markets are now predicting at least five interest rate cuts by the Bank of England next year. Pimco is also betting on a hard landing for the British economy, with its chief investment officer seeing a greater risk of recession in the UK compared to the US. Both firms anticipate that yields on UK government debt will fall faster than Treasuries as the UK economy slows. [Extracted from the article]