Post by fireopal on Mar 10, 2011 5:38:03 GMT 4
Pimco's Total Return Fund, the world's biggest bond fund, has dumped all U.S. government-related securities, including U.S. Treasurys and agency debt.
The move was not a surprise given Pimco chief Bill Gross's recent statements that Treasurys are over-valued.
"It just gives people that follow him the bias not to bullish on the Treasury market," said Jefferies Treasury Strategist John Spinello. "He thinks rates are going higher."
In fact, there was little reaction in the bond market when news of move leaked out Wednesday morning.
In January, Pacific Investment Management's $236.9 billion Total Return fund slashed its U.S. government-related debt holdings to the lowest level in at least two years and increased cash and debt holdings from other developed nations.
The move was not a surprise given Pimco chief Bill Gross's recent statements that Treasurys are over-valued.
"It just gives people that follow him the bias not to bullish on the Treasury market," said Jefferies Treasury Strategist John Spinello. "He thinks rates are going higher."
In fact, there was little reaction in the bond market when news of move leaked out Wednesday morning.
In January, Pacific Investment Management's $236.9 billion Total Return fund slashed its U.S. government-related debt holdings to the lowest level in at least two years and increased cash and debt holdings from other developed nations.