The world’s global thought leader in bonds is pretty much undisputed. Love him or hate him, everyone knows and respects Bill Gross’ name when it comes to fixed income. Well, Gross has come out with a warning that the bull market in bonds might be over. For him, if ten-year Treasuries go above a 2.4% yield it is a signal that a turning point may have finally come to the market. Gross is worried about the pace of wage gains, and how they may reflect economic strength and rate hikes to come, all of which would be bad news for ultra-high bonds prices. The big push higher in yields might be sparked by an unexpectedly strong inflation report/s.
FINSUM : Bill Gross is a very respected name, but he is just one of a cacophony of bond fund managers giving doomsday warnings. Everyone has been saying for years that rates were going to surge.