Bill Gross confident in ‘trade of the year,’ says fund has recovered

Finance


He’s still banking on what he’s calling the “trade of the year,” which is a bet that German bond prices will fall while U.S. Treasurys will rise.

The 10-year German bund yield is nearly 0.50 percent, while the 10-year Treasury yield is close to 3 percent right now, he pointed out. Bond yields move inversely to prices.

“One of these days, and hopefully soon, that difference has got to be narrowed,” he said. “In the meantime, there’s some volatility as the bund does better based upon weakness in Italy … or as Treasury [yields] go up based on upon a Fed decision.”

Meanwhile, Gross’ bond fund posted $300 million in withdrawals in the month of May, data from research service Morningstar showed Tuesday.

The fund had assets of $2.1 billion at the end of April.

“Investing requires patience,” Gross said. “This is a trade that will work out.”

— CNBC’s Tae Kim and Reuters contributed to this report.



Source link

Products You May Like

Articles You May Like

Don’t be like the Fed if you own Amarin
Markets are just experiencing a ‘midlife crisis,’ veteran wealth manager says
As youth e-cigarette use surges, FDA may stop convenience store sales
The rules were changed, making odds of winning Mega Millions so slim
Bank of America CEO Brian Moynihan on cutting 100,000 jobs

Leave a Reply

Your email address will not be published. Required fields are marked *