One of the biggest bond bears is now a buyer.
Bill Gross, who runs the world’s biggest debt fund at Pacific Investment Management Co., increased holdings of Treasuries and bonds outside the U.S. last month while cutting money-market securities.
Gross boosted his $243 billion Total Return Fund’s investment in U.S. government securities to 8 per cent of assets in June from 5 per cent in May, according to Newport Beach, California-based Pimco’s website. Bonds in developed markets outside the U.S. rose to 13 per cent of holdings from 10 per cent. Cash and equivalents dropped to 29 per cent from 35 per cent.
Remember, Gross warned back in March that yields would rise once QE ended.
You can see here, that didn’t work so well.