Gross Calls Sovereign Bonds Too Risky With U.S. Yields Near Lows
- Yield on World Sovereign Bond Index falls to less than 1%
- Demand for debt is waning following plunge in yield, CIBC says
Gross: Inflation Expectations Too Low on 30-Year Bonds
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Bill Gross said sovereign bond yields at record lows aren’t worth the risk.
“The sovereign bonds are not up my alley,” Gross, who built the world’s biggest bond fund at Pacific Investment Management Co. and is now at Denver-based Janus Capital Group Inc., said on Bloomberg Television Wednesday. “It’s too risky.” Low yields mean bonds are especially vulnerable because a small increase can bring a large decline in price, he said.