Friday, May 06, 2011

How the tides turn... Newport Beach. Recall this press release. Now we have the rejoinder from the market.

(from Yahoo News)

NEW YORK (Reuters) - PIMCO's Bill Gross, who runs the world's largest bond fund, said on Friday the only way he would reverse his "short" position on U.S. government-related bonds and purchase Treasuries again is if the United States heads into another recession.

Since the news on April 11 that Gross turned more bearish on government debt including Treasuries, reflecting his growing worries over the country's fiscal deficit and debt burden, Treasury prices have been soaring.

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