Pimco says treasuries are starting to look attractive after rout

Pacific Investment Management Co. is starting to see opportunity in Treasuries after a selloff spurred by concerns over US President Donald Trump's policies.

Markets are focusing on the risk that "foreigners might reduce allocation to US holdings but not assigning as much probability to a scenario that growth will be weak," Mohit Mittal, Pimco's chief investment officer for core strategies, said in a Bloomberg TV interview.

Given the US economy is likely to slow longer term, there is value in US bonds at these levels, he added. Pimco call indicates investors may be beginning to see the worst of rout as over, after a "sell America" trade took markets by storm over past month and threw haven status of Treasuries into question. The US bond market is starting to get some relief, with long-maturity yields falling after Trump indicated a willingness to strike a deal with China.