(Bloomberg) -- Pimco, which runs the world’s biggest mutual fund for bonds, said it favors European government securities with long maturities as a scarcity and central-bank buying push low yields even lower.

Among its favorites are Germany’s 20- to 30-year debt, according to Andrew Bosomworth, head of German portfolio management for Pimco in Munich. While raising its forecasts for growth and inflation in the region, Pimco expects long-dated yields -- among the most sensitive to the consumer-price outlook -- to be further cut by the European Central Bank’s bond-buying program. Germany’s 30-year yield already has tumbled to 0.65% from 1.39% on Dec. 31.

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