Pacific Investment Management Co. warned that the Federal Reserve could pivot back toward interest rate hikes if US inflation moves higher, with the asset manager preferring to buy bonds in other markets. The California-based firm, one of world’s largest fixed income investors, maintains a preference for bonds in the UK, Europe, Australia and Canada over US Treasuries, on the view that central banks there are more likely to deliver on policy easing this year. “If inflation starts to re-emerge then there’s a possibility that the Fed hikes instead of delivering any cuts,” Mohit Mittal, chief investment officer for core ... (full story)