Bill Gross is OUT of US Treasuries:
Bill Gross, founder and co-chief investment officer of Newport Beach, Calif.-based Pacific Investment Management Co. has emptied Pimco’s Total Return Fund, the world’s biggest bond fund, of its U.S. government-related holdings, including Treasury debt, the company disclosed on Wednesday.
The Bond King has expressed concern about the lack of potential buyers of US Treasuries after QE2 ends…so it looks like he’s got his money where his mouth is.
For now, sentiment is so bearish on the Long Bond that I’d expect prices to get at least a short-term pop of sorts. It’s been a rapid rise in yields since QE2 ended – we are perhaps due for a bit of a breather.