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Pimco’s Gross Eliminates Government Debt From Total Return Fund (dumps US debt)

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posted on Mar, 10 2011 @ 06:44 AM
Pimco’s Gross Eliminates Government Debt From Total Return Fund

Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., eliminated government-related debt from his flagship fund last month as the U.S. projected record budget deficits.

Pimco’s $237 billion Total Return Fund last held zero government-related debt in January 2009. Gross had cut the holdings to 12 percent of assets in January, according to the Newport Beach, California-based company’s website. The fund’s net cash-and-equivalent position surged from 5 percent to 23 percent in February, the highest since May 2008.

Yields on Treasuries may be too low to sustain demand for U.S. government debt as the Federal Reserve approaches the end of its second round of quantitative easing, Gross wrote in a monthly investment outlook posted on Pimco’s website on March 2. Gross mentioned that Pimco may be a buyer of Treasuries if yields rise to attractive levels.

Treasury yields are about 150 basis points too low when viewed on a historical context and when compared with expected nominal gross domestic product growth of 5 percent, he wrote in the commentary. The Fed is scheduled to complete purchases of $600 billion of Treasuries in June.

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Drudge Report

edit on 10-3-2011 by Xcathdra because: (no reason given)

posted on Mar, 10 2011 @ 06:46 AM
Quite possibly this is the snowball that has been dropped at the peak of the mountain. The company dumped all of there US debt, about 250+ billion dollars due to our National debt.

I am curious how quickly this is going to gain momentum.

posted on Mar, 10 2011 @ 09:54 AM
I heard this this morning.. I think it was on MarketPlace Morning Report.. Interesting move. The analyst talking about it said it was basically good news -- but the logic made no sense whatsoever.

Good thing to keep an eye on anyway.

posted on Mar, 10 2011 @ 10:35 AM
this is a sign we all should monitor closely.
When an investment house gets liquid
and dumps all gov debt, you should know that
they know something you do not. It's
called insider trading and it happens
every day on wall street and around
the globe. They know the US dollar is about
to collapse. I do hope you're not holding
us dollars when OPEC shifts away from the
US Petro Dollar.

posted on Mar, 10 2011 @ 03:51 PM
reply to post by boondock-saint

I dont think the US dollar is about to collapse.. I think it already has, and right now everything the government does is nothing but a short term house of cards magic trick.

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