NEW YORK, April 17 (Reuters) – U.S. bond giant PIMCO said protectionism in U.S. trade policy strengthened the case for dialing down exposure to the U.S. dollar and long-dated Treasury bonds, while greater reliance on foreign bond markets had become more attractive.
U.S. President Donald Trump’s tariffs have rocked financial markets and triggered a violent selloff last week in Treasuries and the dollar that cast fresh doubt on the long-held belief in the safe-haven status of U.S. assets.
“With its protectionist policy pivots, the U.S. is giving investors worldwide an occasion to rethink long-held assumptions about the U.S. investment landscape,” Marc Seidner, chief investment officer for non-traditional strategies, and Pramol Dhawan, head of emerging market portfolio management at PIMCO, said in a note on Thursday.
