Bill Gross, the manager of the world's largest bond fund, has told investors selling treasuries they could be left disappointed if they overestimate the speed with which the Fed will wrap up QE.
Speaking to Bloomberg, PIMCO co-founder Gross (pictured) said the US' exit from QE is unlikely to be as rapid as many are speculating, and Fed chairman Ben Bernanke is unlikely to begin a full scale withdrawal unless inflation spikes. "Those that are selling treasuries in anticipation the Fed will ease out of the market might be disappointed unless we have inflation close to 2%," he said. Yields on US treasuries have raced ahead in the last few weeks, with the 10-year yield up 54bps in the last month alone. Investors have been fleeing the asset class following Bernanke's comments abou...
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