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Message: TBT or PST short Treasuries?

TBT or PST short Treasuries?

posted on Jan 06, 2010 01:08PM

Bill Gross the heraled guru of bond investing (PIMCO) says yields are Treasures will go up without "sugar daddy's help." That could bode well for TST & PST, both in Peter's model portfolio. Excerpt and link follow. What say you guys.....is it getting time or have you yet bought TBT or PST?

"Jan. 6 (Bloomberg) -- Bill Gross, who runs the world’s biggest mutual fund at Pacific Investment Management Co., said asset markets in the U.S. and U.K. may suffer as governments withdraw stimulus measures.

“Most ‘carry’ trades in credit, duration, and currency space may be at risk in the first half of 2010 as the markets readjust to the absence of their ‘sugar daddy,’” Gross said in a commentary posted on Newport Beach, California-based Pimco’s Website today.

The weakening U.S. fiscal outlook may continue to push Treasury yields up faster than German bunds, Gross said. Projected increases in Treasury borrowing contrast with the fiscal outlook in Germany where a constitutional amendment has mandated a balanced budget for the country by 2016."

http://www.bloomberg.com/apps/news?pid=20601087&sid=a5jUnN6mdboo&pos=3

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