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Monday, April 11, 2011

Bill Gross Shorts U.S. Treasuries

Does Bill Gross know something we don't?  Obviously, he has taken the opposite position on U.S. Treasuries through the weekend by moving from getting out of U.S. Treasuries and then converting to shorting them.  This means that Pimco is betting against U.S. Treasuries as they must see them going down in value due to the current fiscal crisis we are in.  With QE2 due to expire June 30 2010, making inflation a question mark as we wonder whether QE3 will emerge to continue liquidity and fostering additional inflation.  With China now slowing or not purchasing U.S. Debt at all, Japan being forced to sell Treasuries to raise money to recovery its devastation and now one of the largest U.S. Bond funds pulling out of U.S. Treasuries and shorting them, the path to QE3 seems to have been paved.  To read more on Pimco shorting use Treasuries see the article on Zerohedge

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