(Bloomberg) -- Pimco says investors should move out of government securities and into corporate credit because the U.S. will avoid a recession.

With sovereign bonds in Japan and Germany offering negative yields, and equity valuations stretched, Pimco says high-quality company debt, junk bonds and bank loans offer a better risk-adjusted alternative. Investor demand for U.S. debt will be tested this week when the government auctions $24 billion of three-year notes, $20 billion of benchmark 10-year securities and $12 billion of 30-year bonds on March 10.

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