Home > Main > Bill Gross will start to buy U.S. Treasuries now that QE II is over

Bill Gross will start to buy U.S. Treasuries now that QE II is over

July 12, 2011

Remember when Bill Gross asked the question – “Who will buy the bonds when the Fed stops buying bonds?”. He had famously and loudly sold his entire U.S. Treasury position in late 2010.

I answered for him,“Bill Gross will buy the bonds” when QE II stops.

Turns out that Bill Gross started buying bonds:

“More notably, it appears that Gross has gotten tired of being mocked by CNBC for his Treasury short position and has raised his cash Treasury bond exposure by 3% to 8%, though even with that move he is still net neutral courtesy of a 1% Agency cash position and -9% in synthetic swap exposure, unchanged from May. Therefore Gross is no longer short on a net basis.”

It won’t be long now before he buys another few hundred million.

 

Update 8:42pm:  I should check Mike Norman before posting.  In fairness, I’ve been really hard on this call by BG for months, through many posts.

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  1. July 12, 2011 at 8:13 pm

    My fondest hope is that TC is selling Bill Gross those Treasuries…

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