Breaking: Bill Gross Is Now a Bond Bear

After 25 years of being a bond bull, Bill Gross has turned bearish:

Long-time bond bull Bill Gross, just one year after declaring the end of the bear market for U.S. Treasuries, on Thursday conceded the snappy pace of global economic growth will likely keep bonds on their heels.
Furthermore, Gross forecast that benchmark Treasury yields will range higher than previously thought, prompting him to acknowledge he is now a “bear market manager” after a quarter century as the global bond market’s most powerful bull.
Gross, chief investment officer for Pacific Investment Management Co. and manager of the world’s largest bond fund, said solid global growth and a mild acceleration of inflation in the United States and abroad will drive 10-year U.S. Treasury note yields to top out at 6.5 percent over the next three to five years as opposed to the 5.5 percent ceiling previously forecast and 5.1 percent seen on Thursday.
Gross’s comments were included in a note summarizing an annual gathering of Pimco investment managers, a copy of which was obtained by Reuters.

Posted by on June 7th, 2007 at 3:40 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.