Pimco: US bond yields may further decline, and the Federal Reserve may cut interest rates in June

Pimco multi-asset strategy portfolio manager Erin Browne said that US bond yields may remain within the range of 3.5% to 4.25%, and the Federal Reserve is expected to start a rate-cutting cycle in the middle of the year. Browne stated that the baseline scenario is for a rate cut by the Fed in June. The market's current expectation of nearly six rate cuts by the Fed this year may be excessive. It is unlikely that the Fed will take such aggressive action unless there is a severe economic downturn and recession occurs.