PIMCO Scales Back Expectations for Fed Rate Cuts After Strong Jobs Data

• PIMCO has trimmed its expectations for Fed rate cuts in 2024 from 3 to 2 after better-than-expected March jobs report • Portfolio manager Mike Cudzil says the economy is proving it can handle higher rates for now
• PIMCO has been underweight duration recently, viewing market as too optimistic on rate cuts • Traders earlier expected 150 bps of cuts in 2024; that's down to 67 bps, more in line with PIMCO's view • Cudzil says they may soon get overweight duration with rates closer to neutral