Bill Gross doesn’t much like Treasury bonds now, but it’s not because he’s banking on a U.S. downgrade.
Gross is the globetrotting bond manager whose decision to empty his Pimco Total Return fund of U.S. government debt was the talk of the markets this week.
But appearing on Bloomberg television Friday, Gross said he isn’t necessarily expecting the worst for the U.S. economy – only that he believes the risk-reward profile on a 3.4% 10-year Treasury note is none too good at a time when the Fed is promising to whip up inflation.
That is to say, Gross will want to see Treasuries yielding more than they are now before he buys them. How much more?
Another sign of preparation for the coming turkey shoot, no doubt.
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