Just a few days ago, PIMCO was revealed to have gone short Treasuries.
Since then, that short has gone the wrong direction, and even yesterday’s debt outlook downgrade didn’t help.
Is the big bond firm already reversing itself?
POLITICO’s Morning Money includes this tantalising one liner: “WE HEAR – That PIMCO is back in the market buying Treasuries despite some protestations to the contrary.”
Obviously that’s just a little nugget, but Gross & Co. are the kings of jujitsu, and talking their book in a favourable way. We would not at all be surprised if they were buying Treasuries, while tout le monde freaks out about the end of QE, rising rates, and the challenge of US debt financing.