Gross bullish on 10-year U.S. bonds:
MarketWatch - June 21
CHICAGO (MarketWatch) -- Bill Gross, the head of one of the largest mutual fund companies specializing in bonds, said Tuesday that yields on 10-year Treasurys could fall as low as 3% over the next two years amid an expected slowdown in inflation and corporate profits.
Gross, founder and chief executive of Pimco LLC, told an audience at the Morningstar Investment Conference in Chicago that he's bullish on long-term Treasurys and German government debt.
"We're in a low-return world, not just for bonds, but for stocks, hedge funds and real estate," Gross said. In bond trading on Tuesday afternoon, the yield on the 10-year Treasury was quoted at 4.06%.Gross said Pimco has been a seller of U.S. government inflation-protected securities. He said the Fed funds rate could peak at 3.5% this summer vs. its current level of 3.0%, and he ventured that the central bank could begin cutting its short-term lending rate as early as the end of the year.
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