Mortgage Blog

Bill Gross's position on long term Treasury Bonds

March 10th, 2011 6:38 AM by Eric Fang

Here is the news: Bill Gross of PIMCO had
liquidated all of his holdings in long term
Treasury debt for his PIMCO’s flagship Total
Return Fund. That fund had total assets of
$237 billion as of Feb. 28. Holdings of
Treasuries had been over half of the total
as of June 2010, so this is a big shift.
The thinking is that Gross believes the
bond market will collapse when the Fed ends
QE2 in June, and investors will have to
absorb all of the new Treasury debt being
created without the Fed printing new money
to cover it.

So that means Bill Gross believes the
fixed interest rate will go up after June 30th.

Posted in:General
Posted by Eric Fang on March 10th, 2011 6:38 AM



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