Pimco sees Treasuries falling as rates rise

Sydney

PACIFIC Investment Management Co (Pimco) sees Treasuries falling as the US Federal Reserve raises interest rates. Stocks and corporate bonds should be able to weather the shift, according to the manager of the world's biggest bond fund.

"We expect about a 50-70 basis point backup in 10-year rates over the next year or so," Pimco money manager Mihir Worah told reporters on Thursday in Sydney. "Risky assets, whether they're corporate bonds or equities, should be able to handle that kind of backup in rates."