Gross: Markets ahead of themselves with rate hike expectations

|By:, SA News Editor

"First Fed Funds hike in December 2014," asks Bill Gross. "I think bond markets have it wrong ... Can 49ers win the Super Bowl? Same odds."

Gross doesn't think higher rates at the short term are coming before 2016 at the earliest, giving traders on the short end opportunity as Eurodollar futures have priced in one rate hike by the end of this year and a more than 100 bps of tightening by the conclusion of 2015.

Short and medium duration Treasury ETFs: SHY, IEF, PST, IEI, TYO, DTYS, BIL, UST, SHV, TBX, VGIT, VGSH, GSY, SCHO, DTYL, SCHR, TYD, ITE, DTUL, TUZ, SST, FIVZ, DTUS, TBZ, DFVL, DFVS, TYNS