Via the FT:
Pimco has pared its positions in government debt on fears that a breakthrough in US-China trade talks could trigger a violent sell-off, which would put an end to one of the biggest fixed income rallies in history.
…“We’re a lot more defensive,” Mr Ivascyn said in an interview. “Even if we get a narrow trade agreement [between the US and China] we could see a pretty powerful snapback in yields.”