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Pimco's decision to dump Treasury bonds from its biggest bond fund is being called a smart move by investment pros—and one that individual investors might want to follow.
Sentiment around the fixed-income sphere is that Pimco is merely biding its time until government debt prices get cheaper and yields start to rise, essentially confirmed by Gross when he said yields are not attractive enough at this point.
The question of who will be buying Treasurys is relevant as the final months count down in the Federal Reserve's program to buy another $600 billion in mostly shorter-term debt. Gross himself asked recently in an analysis who would buy Treasurys once the central bank backs out.