Bill Gross’s case against bonds basically boils down to this:
More easing means lower interest rates.
Less easing means higher rates (because who will be there to buy bonds after QE ends?).
Well, today the Fed delivered a big, dovish announcement, as evidenced by the surge in gold and decline of the dollar. Ergo, according to the Gross thesis, interest rates should be down.
But in fact… here’s the intraday graph of 30-year rates. Up, up, and away.
Here’s what we’ve said on the subject in the past.