Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

We asked traders for their opinion on the launch of bitcoin futures

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

Energy demand steps back in play
Advertisement
more Volatility>>

Volatility

Volatility & opportunity in the energy sector
more Financials>>

Financials

Daily Price Action: E-mini S&P 500
more Options>>

Options

Trading Vertical Option Spreads

Advertisement

Gross says bull market in bonds likely ended April 29

By Paul Cox, Bloomberg

May 10, 2013 • Reprints

Pacific Investment Management Co.’s Bill Gross wrote in a message on Twitter that the 30-year bull market for bonds “likely ended” on April 29.

Gross, the founder of Pimco and manager of the world’s biggest bond fund, has been advising investors to sell riskier assets and buy government debt, including inflation-linked securities and nominal Treasuries as central banks pursue unprecedented stimulus measures. He raised the holdings of Treasuries in his flagship fund in April at to the highest level since July 2010.

Treasuries, for now “are a better alternative than cash,” Gross wrote in his monthly investment outlook on May 1. “Current policies come with cost, even as they magically float asset prices higher. Negative real interest rates, inflation, currency devaluation, capital controls and outright default” are among the costs, or “haircuts,” from global central banks’ unprecedented monetary stimulus.

Yields on benchmark 10-year U.S. Treasury notes fell to 1.61% on May 1, the least since December. The yield dropped to a record low of 1.38% in July 2012. The yield climbed to 1.9% today for the first time March 7.

The proportion of U.S. government securities in the $292.9 billion Total Return Fund increased to 39%, from 33% in March, according to data released yesterday on Newport Beach, California-based Pimco’s website. Mortgage holdings rose to 34%, from 33% in March, which was the lowest level since August 2011. The company doesn’t comment directly on monthly changes in its portfolio holdings.

Global Easing

Other central banks around the world are pursuing monetary policies similar to the U.S. Federal Reserve to boost domestic economic growth. The U.S. has held its target interest rate at a record low zero to 0.25% since December 2008 and spent $2.3 trillion purchasing Treasury and mortgage-related debt from 2008 to 2011 in the first two rounds of quantitative easing. The Fed buying this year has been divided between $40 billion a month of mortgage-backed securities and $45 billion a month of Treasury securities.

The European Central Bank last week cut its key interest rate to a record low 0.5% from 0.75%. Australia cut borrowing costs to a record this week and India and South Korea trimmed borrowing costs this month. The Bank of Japan on April 4 announced it would double monthly bond purchases.

The Total Return fund returned 6.74% over the past year, beating 90% of its peers, according to data compiled by Bloomberg. It returned 0.27% in the past month, beating 54% of its peers.

The fund’s government and Treasury debt category includes fund holdings of U.S. Treasury notes, bonds, futures and inflation-protected securities.

Pimco, a unit of the Munich-based insurer Allianz SE, managed $2.04 trillion in assets as of March 31.

Bloomberg News

About the Author

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Related Articles
Daily Price Action: E-mini S&P 500
Daily Price Action: E-mini S&P 500
Daily Price Action: E-mini S&P 500
Daily Price Action: E-mini S&P 500
GBP/USD drops as weak CPI reduces BoE May rate rise odds
Previous
Traders look to retail sales, PPI and production next week
Next
U.S. stocks advance on economic optimism amid stimulus efforts
Related Terms
Bloomberg 5254European Central Bank 3208financials 2975Interest Rates 2108California 1387bonds 1125Bank of Japan 1119U.S. government 1118Treasuries 1007Federal Government 965U.S. Treasury 854U.S. Federal Reserve 491Twitter 371Fixed income 302Notes 287Yields 202Bill Gross 198Pacific Investment Management Co. 164PIMCO 65Bill gross 44Total Return Fund 39Pimco 36Allianz SE 30Gross 25

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images