Wednesday, October 27, 2010

PIMCO's Gross: 30-year Bull Market in Bonds is Over

by Bill McBride on 10/27/2010 06:46:00 PM

From PIMCO's Bill Gross: Run Turkey, Run

[W]hile next Wednesday’s [FOMC] announcement will carry our qualified endorsement, I must admit it may be similar to a Turkey looking forward to a Thanksgiving Day celebration.
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Anyone for 1.10% 5-year Treasuries? Well, the Fed will buy them, but then what, and how will PIMCO tell the 500 billion investor dollars in the Total Return strategy and our equally valued 750 billion dollars of other assets that the Thanksgiving Day axe has finally arrived?
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Ben Bernanke ... [y]ou are doing what you have to do, and it may or may not work. But either way it will likely signify the end of a great 30-year bull market in bonds ...
Gross has been a bond bull for as long as I can remember - I think even last year when many others were calling the end of the bond bull market.