US debt reckoning escalates sharply as top bond buyer pulls back from long-term Treasuries

(Credit: Jemal Countess—Getty Images for the Peter G. Peterson Foundation)

• Pimco said it's reducing exposure to long-term U.S. bonds amid concerns about soaring federal deficits and debt. Instead, it favors shorter-term bonds, some overseas issuers, and corporate debt.

Bond giant Pimco significantly ramped up a market backlash against soaring U.S. debt by announcing plans to reduce exposure to long-term Treasuries.