Friday, April 15, 2011

Huge bond fund bets against U.S. debt - Business

Huge bond fund bets against U.S. debt - Business - Eye on the Economy - Stocks & economy - msnbc.com
updated 4/11/2011 2:43:34 PM ET

The world's largest bond fund began betting against U.S. government debt last month on the expectation that shaky finances will jolt interest rates higher.

PIMCO, through its outspoken co-chief investment officer, Bill Gross, have been raising alarms about a lack of buyers for Treasuries once the Federal Reserve ends its own bond purchase program, also known as QE2, in June.

In February Gross revealed his ultra-bearish view on the United States by dumping all of his fund's U.S. government-related debt holdings.

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