Employers are reluctant to hire because of political clashes over the U.S. budget, Europe’s sovereign-debt crisis and volatile energy costs, according to Pacific Investment Management Co.’s Anthony Crescenzi.
The Federal Reserve won’t raise its target rate until next year as Europe’s fiscal crisis threatens to hamper growth, according to Anthony Crescenzi , a strategist at Pacific Investment Management Co., the world’s largest bond- fund manager.
European sovereign debt has just about the same status that was bestowed on subprime mortgage bonds during the depths of the financial crisis, according to Pacific Investment Management Co.’s Anthony Crescenzi.
The current climate in the bond market will probably “hold intact for quite some time,” said Anthony Crescenzi , portfolio manager at Pacific Investment Management Co. LLC in Newport Beach, California.
Treasury two-year yields were near a two-week high as the U.S. prepared to sell a total of $99 billion of debt in three days, prompting concern that new supply might overwhelm demand as the economy recovers.