According to BusinessInsider Bill Gross, who runs the world’s biggest debt fund at Pacific Investment Management Co., increased holdings of Treasuries and bonds outside the U.S. last month while cutting money-market securities.
Gross boosted his $243 billion Total Return Fund’s investment in U.S. government securities to 8 percent of assets in June from 5 percent in May, according to Newport Beach, California-based Pimco’s website. Bonds in developed markets outside the U.S. rose to 13 percent of holdings from 10 percent. Cash and equivalents dropped to 29 percent from 35 percent.
Pimco, which has been criticized for missing this year’s rally in Treasuries, revised how it listed asset holdings last month to show that its flagship fund held U.S. government debt. Gross has said that U.S. yields are too low given the outlook for inflation. In an interview on CNBC today, Gross said he bought 2- to 3-year notes since U.S. bills are returning close to zero and the purchases shouldn’t be viewed as endorsement of the Treasury market.
Read more at http://www.businessinsider.com/bill-gross-buys-treasuries-2011-7
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