Posted by
alfredlester on Wednesday, March 09, 2011 6:48:50 PM
NEW YORK (Reuters) - The World&&9;s Largest Bond Fund icts dumped all of U.S. Government Debt in The Biggest signal yet of how negative investors about Have Become the U.S. Treasury market.
The move by Bill Gross&&9;s $ 236.9 PIMCO Total Return fund one billion (PTTRX.O) Comes In The wake of a vicious Treasury market sell-off and just days after he Questioned Who will buy Treasuries oz The Federal Reserve HALTS ITS latest round of Bond Purchase in June.
Bond Prices Have Come Under severe selling pressure has Strengthening Because Of U.S. economy and as investors brace for What Could Happen When The U.S. central bank ends icts Controversial quantitative easing program.The 10-year Treasury yield hit a 9-1/2 month high of 3.77 percent on February 9, rising 40 basis point in The Short period "from The End of January.
Last week, Gross Reuters Insider Told That a 4.0 percent yield for 10-year notes Is A "rational expectation" if the Fed "Disappears As The buyer of last resort," Gross said.
Pacific Investment Management Co&&9;s Total Return fund sold all ITS-related U.S. Government securities, U.S. Treasuries and agency Including debt, a source familiar With The fund&&9;s holdings are Said Wednesday.
A PIMCO Spokesman declined, to how.
In January, the Total Return Fund Slashed icts U.S.Government-related debt holdings to The Lowest level in at least Two Years and Increased cash and debt holdings from Other Developed Nations.
"It&&9;s important signal Certainly year in The Sense optometrist are allocating away from Treasuries in Favor of a High Spread product," Said Christian Cooper, head of U online cash advance.S. dollar derivatives trading at Jefferies & Co.
Government-related securities include Treasuries, Treasury Inflation-Protected Securities, agencies, interest rate swaps, Treasury futures and options, and corporate securities Guaranteed by the U.S. Federal Deposit Insurance Corp..
Gross, aussi Who Helps Oversee more than $ 1.1 trillion as PIMCO&&9;s co-chief investment officer, has railed Often Against U.S. deficit spending and Its inflationary impact.He has Advocated buying bonds with "safe," High Yield - Such as Emerging-market bonds - Cdn That Withstand possible erosion of returns by inflation.
The Total Return fund&&9;s cash holdings surged $ 54.5 to one billion as of February 28 at one billion from $ 11.9 The End of January.
Defined as cash is Anything That has a duration - a bond&&9;s sensitivity to interest rate fluctuations - of less than 1 year.
Purpose PIMCO May Have Other asset-allocation plans. In a December Regulatory filing the Total Return fund Said It May Start investing up to 10 percent of assets icts in equity-related "securities, Such as convertible and preferred stock, the after the first quarter of 2011.
(Additional reporting by Emily Flitter, Editing by Padraic Cassidy)
PIMCO Total Return dumps Government-related debt