Markets have long struggled to price geopolitical risk. Part of the issue is that each flare-up tends to be viewed as a one-off volatility jolt to be weathered and then faded once there is resolution.

Barely a month into 2026, markets have already weathered multiple bouts of rolling, event‑driven volatility. Geopolitical surprises and policy pivots have triggered sharp price moves from the U.S. to Japan to Europe, from sovereign bonds to currencies to mortgages.

Mortgage bond reinvestment could be the Federal Reserve’s most effective and immediate tool to unlock the housing market – without even touching interest rates.

Investors enjoyed broad gains across major asset classes in the first half of this year, but they endured considerable market swings to earn those returns.

Rapid U.S. policy changes pose challenges for investors accustomed to a global financial system anchored in U.S. markets and assets.

Lofty U.S. stock valuations call for a renewed focus on risk assessment and portfolio diversification.

Amid concerns about the impact of rising deficits on U.S. Treasuries, it helps to differentiate bond investments by maturity, credit rating, and global relative value.

Balanced risks to inflation and employment indicate it’s time for the Fed to normalize interest rates, enhancing a positive backdrop for bonds.

In this PIMCO Perspectives, we explore the dispersion playing out across monetary policy and financial markets.

This PIMCO Perspectives assesses how the term premium’s 40-year downturn could start to reverse.