According to Jinshi, Constantine Witte, portfolio manager of Pacific Investment Management Company (PIMCO), said at an event in Frankfurt that the inverted yield curve (long-term bond yields are lower than short-term bond yields) is not the new normal and should normalize. He believes that from a fiscal perspective, the long end of the yield curve will normalize, while the front-end yield will fall as interest rate cuts are implemented. He also pointed out that the risks facing Europe's fiscal outlook are increasing. Pimco Global Economic Advisor Clarida also said at the same event that the global yield curve will become steeper as central banks cut interest rates.
