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You can have Bill Gross' short position in Treasurys when another recession pries it out of his...

You can have Bill Gross' short position in Treasurys when another recession pries it out of his hands. After weeks of the bonds' gains, Gross tells Reuters that yields are low, but "perhaps the only justification for a further rally would be weak economic growth or a future recession" that dents inflation. The 30-year yield up slightly, +0.02 to 4.28%, but otherwise still falling: 10-year -0.01 to 3.14%; five-year -0.03 to 1.85%.
Comments (5)
  • Can you say oops? Jeff Gundlach had this entire move in equities and bonds nailed perfectly. There's a reason why his Total Return Bond Fund beat Pimco's.
    6 May 2011, 01:50 PM Reply Like
  • I am actually long the 20+ Treasuries believing that the US will not let long yields rise.
    6 May 2011, 02:00 PM Reply Like
  • The U.S. has no control over long yields unless they change strategy and start selling them to themselves.
    6 May 2011, 02:12 PM Reply Like
  • The 30 year yield has moved from a high of 4.76% in February to 4.26% now and the 20 year yield has moved from 4.56% to 4% so someone is buying.
    6 May 2011, 02:19 PM Reply Like
  • I have sympathy for Gross. He's in charge of a lot of money.

     

    In the long run he's right. Do you want to lend the U.S. government your money for 30 years and get 4%?

     

    In the short run, take credit for being the genius who was able to get a "risk-free" return of 3% from the U.S. government.
    6 May 2011, 07:15 PM Reply Like
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