The global financial market is entering a historic turning point! The latest blockbuster report issued by PIMCO, a US bond giant, warns that with the continued escalation of the Trump government's protectionist policies, the safe haven status of the US dollar and US bonds is facing unprecedented challenges. This institution, which manages $2 trillion in assets, has clearly stated that it is reducing its exposure to US dollars and long-term US bonds, and instead increasing its holdings of European, Japanese, and emerging market bonds. This strategic adjustment may indicate a significant change in the global capital flow pattern.

The loosening of US dollar hegemony: protectionism shakes market confidence

PIMCO's Chief Investment Officer for Non Traditional Strategy, Marc Seidner, and Head of Emerging Markets, Pramol Dhawan, pointed out in their report that the financial market turbulence caused by Trump's tariff policies has led to a rare simultaneous sell-off of US bonds and dollars. The report emphasizes that "the privileged position that the United States has long enjoyed is being tested, and the position of the US dollar as the global reserve currency and US bonds as the preferred reserve asset is not taken for granted." This warning statement comes from one of the world's largest bond management institutions and has significant market influence.

Major shift in investment strategy: reducing holdings of US bonds and increasing holdings of overseas assets

PIMCO has explicitly stated that it is implementing a "low to dollar" strategy and believes that long-term government bonds from Europe, the UK, Japan, and emerging markets are more attractive. This adjustment reflects a fundamental questioning of the traditional investment logic of the "core position of American assets". Analysts pointed out that the rare combination of soaring US bond yields and falling US dollar indices last week, which usually only occurs during emerging market crises, is now unfolding in the world's largest economy, and this abnormal phenomenon is worthy of vigilance.

Global Financial System Restructuring: The Era of Multipolarization is Coming

The report emphasizes that the uncertainty of US policies is accelerating the restructuring of the global financial system. We may be moving towards a more multipolar world, and our dependence on a single reserve currency will gradually weaken. PIMCO warns that this transition process will be painful, especially for investors who are overly dependent on US assets. As the speed of capital inflows into the United States slows down, the US dollar exchange rate and US bond prices may face long-term pressure.

Market impact and outlook

PIMCO's strategic shift sends a strong signal: Against the backdrop of rising trade protectionism, global investors need to reassess their habitual thinking of 'sustainable US dollar hegemony'. Historical experience has shown that changes in the status of reserve currencies are often accompanied by severe market fluctuations. For Asian investors, special attention should be paid to three major risks: intensified volatility in US bond yields, periodic depreciation of the US dollar exchange rate, and market mismatch risk during the global capital reallocation process.