The global economy is at an inflection point which continues to produce a favourable bond environment, contended Doug Hodge, Executive Vice-President of PIMCO at last week's FEAL February 2003 Briefing Series.

Hodge, an American based in Japan, said " “inflection points happen over a period of months or even years. We believe we’re at one now.” He elaborated: "Americans rely on foreigners to buy our bonds. We require foreign capital to finance our deficit. We have to offer those financial assets at a price that will be attractive to foreign buyers. There's two ways to do that: raise interest rates and cheapen the currency so it's less expensive for them ...