Bloomberg Surveillance · Wednesday, July 22, 2026
Tony Cascendi, Executive Vice President of Market Strategy at PIMCO, highlighted that the current yield on the Bloomberg US Aggregate index is 4.91%, the highest in a year. He advised investors to focus on the starting yield as a primary determinant of future returns and noted that rising yields present opportunities for investors.
“So think the year twenty thirty one. I could probably tell you in twenty thirty one, God Willing that the yield, the return that you had on bonds was in the US aggregate was four point nine percent ninety four percent correlation since nineteen seventy eight. So the starting yield is really important. It's the main determinant of your future returns.”
“The rising yields lately another bite provides another bite at the apple. Yields have been rising on and off for about four years, fluctuating. Some investors still stuck in care, still stuck in low yielding money marketing intruments in the mid threes or so, when you could get yields between five and seven percent in portfolios.”