Gregory Peters, Co-Chief Investment Officer of PGIM Fixed Income, joins Bloomberg Businessweek Daily to weigh in on this week's bond market moves, including a global selloff sparked by a rout in Japan. In the wake of Japan's bond chaos, leaders gathering at Davos were left wondering how long it would take before so-called "bond vigilantes" target what US Treasury Secretary Scott Bessent calls the “mountain” of US debt. Citadel CEO Ken Griffin told the forum Wednesday that the episode appears to be “a Liz Truss-lite moment,” recalling the UK crisis sparked by tax cuts enacted in 2022 under the-then British prime minister. Former International Monetary Fund First Deputy Managing Director Gita Gopinath said that it’s clear that investors no longer consider the US the secure borrower that it once was. “There are many other markets that were previously considered safe that are no longer safe, and that includes US Treasuries,” she said. Gopinath frequently pointed to America’s budgetary vulnerabilities during her IMF tenure. Peters calls the sentiment "a little melodramatic," and goes on to say that "having a heightened debt-to-GDP with administrative political instability has a tendency of wreaking havoc on the bond market." Peters speaks with Carol Massar and Tim Stenovec.
--------
Watch Bloomberg Radio LIVE on YouTube
Weekdays 7am-6pm ET
WATCH HERE: http://bit.ly/3vTiACF
Follow us on X:
/ bloombergradio
Subscribe to our Podcasts:
Bloomberg Daybreak: http://bit.ly/3DWYoAN
Bloomberg Surveillance: http://bit.ly/3OPtReI
Bloomberg Intelligence: http://bit.ly/3YrBfOi
Balance of Power: http://bit.ly/3OO8eLC
Bloomberg Businessweek: http://bit.ly/3IPl60i
Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:
Apple CarPlay: https://apple.co/486mghI
Android Auto: https://bit.ly/49benZy
Visit our YouTube channels:
Bloomberg Podcasts:
/ bloombergpodcasts
Bloomberg Television: / @markets
Bloomberg Originals: / bloomberg
Quicktake: / @bloombergquicktake
--------
Watch Bloomberg Radio LIVE on YouTube
Weekdays 7am-6pm ET
WATCH HERE: http://bit.ly/3vTiACF
Follow us on X:
/ bloombergradio Subscribe to our Podcasts:
Bloomberg Daybreak: http://bit.ly/3DWYoAN
Bloomberg Surveillance: http://bit.ly/3OPtReI
Bloomberg Intelligence: http://bit.ly/3YrBfOi
Balance of Power: http://bit.ly/3OO8eLC
Bloomberg Businessweek: http://bit.ly/3IPl60i
Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:
Apple CarPlay: https://apple.co/486mghI
Android Auto: https://bit.ly/49benZy
Visit our YouTube channels:
Bloomberg Podcasts:
/ bloombergpodcasts Bloomberg Television:
/ @markets Bloomberg Originals:
/ bloomberg Quicktake:
/ @bloombergquicktake