The next US president is not at immediate risk of a “Liz Truss” moment, despite America’s ballooning government deficit, one of the world’s leading bond investors has said.
Libby Cantrill, head of US policy at Pimco, a leading global bond fund, said investors were not showing any signs of nervousness over holding US government bonds despite forecasts showing the debt pile heading for historic highs above 106 per cent of GDP.
“We don’t necessarily expect a Liz Truss moment in the US Treasuries market,” Cantrill told The Times, referring to the sharp increase in long-term debt yields and the steep fall in the pound after Truss’s mini-budget in September 2022.
“The dollar is the reserve currency and Treasury securities are a reserve asset, so there is structural demand for US assets and that is a luxury that other countries don’t have.”
Figures from the Congressional Budget Office released last week showed the…
