On April 19, three weeks before he called the end of the 30-year bull market in bonds, Bill Gross said he was buying inflation-linked Treasuries, a bet that money printing by the world’s central banks would push up consumer prices.
John Brynjolfsson successfully has traded alternative real assets for more than 25 years. And, in 2009 he traded his career at PIMCO for his own firm, Armored Wolf. As an inflation expert, we get his outlook for the near- and long-term.
Bill Gross, who runs the world’s biggest bond fund, says the Federal Reserve’s open-ended plan to flood the economy with $40 billion a month will ignite inflation. The options market is signaling that won’t happen anytime soon.
The difference between 10-year yields for conventional U.S. government debt and Treasury Inflation- Protected Securities was the smallest since January before a $13 billion auction of inflation-protected notes.
The U.S. sold $16 billion in five- year Treasury Inflation Protected Securities at a record low negative yield as investors continue to pay a premium to hedge against the threat of rising consumer prices.