Treasuries fell on speculation that the exit of Bill Gross from Pacific Investment Management Co. may promp the world’s biggest manager of bond funds to shift away from U.S. government debt.
Janus Capital said in a statement today that it hired Gross to manage a global bond fund. Treasuries are the biggest holding in the Total Return Fund that was managed by Gross at Pimco.
“He’s been a bond bull for most of his career, and during that time bonds have been in a bull market -- maybe the next Pimco bond managers won’t be as bullish,” said Aaron Kohli, an interest-rate strategist BNP Paribas SA in New York, one of 22 primary dealers that trade with the Fed. “He’s been the face of the bond market for some time. It’s hard to attribute the move in the market to anything else,”
Treasury 10-year yields rose four basis points to 2.54 percent as of 9:11 a.m. New York time, according to Bloomberg Bond Trader data.