Pimco selling treasuries

[blazespinnaker]

http://www.bloomberg.com/apps/news?p...9WM&refer=home

Jan. 16 (Bloomberg) -- Bill Gross, manager of the world's biggest bond fund at Pacific Investment Management Co., has pared his Treasury holdings to the lowest in six months.

Gross and a growing number of investors are reducing Treasury bonds in favor of mortgage-backed securities as expectations for lower interest rates this year fade.

..

[metalman]

Re: Pimco selling treasuries

http://www.bloomberg.com/apps/news?p...9WM&refer=home

Jan. 16 (Bloomberg) -- Bill Gross, manager of the world's biggest bond fund at Pacific Investment Management Co., has pared his Treasury holdings to the lowest in six months.

Gross and a growing number of investors are reducing Treasury bonds in favor of mortgage-backed securities as expectations for lower interest rates this year fade.

..

good catch, blaze. so what if everyone did that? if demand for treasuries falls, doesn't the price fall and don't rates rise?

[blazespinnaker]

Re: Pimco selling treasuries

good catch, blaze. so what if everyone did that? if demand for treasuries falls, doesn't the price fall and don't rates rise?

Yes, and that definitely has been happening.

http://www.ustreas.gov/offices/domes...te/yield.shtml

2007 seems like the inflection year.

[Tet]

Re: Pimco selling treasuries

http://www.bloomberg.com/apps/news?p...9WM&refer=home

Jan. 16 (Bloomberg) -- Bill Gross, manager of the world's biggest bond fund at Pacific Investment Management Co., has pared his Treasury holdings to the lowest in six months.
..

If I heard Bill Gross was selling stocks I might panic.

[blazespinnaker]

Re: Pimco selling treasuries

Well, Pimco is a bond fund and I think this is bullish news. So, unless you're a bearishly invested individual, I'm not sure this is news to worry about..

[Tet]

Re: Pimco selling treasuries

Well, Pimco is a bond fund and I think this is bullish news. So, unless you're a bearishly invested individual, I'm not sure this is news to worry about..

Market is up almost 25% since the end of July, I was bearish to that point and didn't miss this move. I share the view that Bill is in charge of a bond fund that competes with stocks, if Bill is looking for bonds that perform better than the ones he currently holds to compete with stocks then that's good news for stocks.