Pimco Likes European Bonds With Economy at Risk From Tariffs

European bonds provide an attractive hedge as tariffs and trade policy uncertainty threaten to bring the region’s economy to a standstill in the second half of the year, according to Pacific Investment Management Co.

The bond giant, which manages more than $2 trillion in assets, favors short- to medium-term bond maturities because they’re anchored by lower interest rates, economist Nicola Mai and portfolio manager Konstantin Veit wrote in a note.