Gross Says Operation Twist Likely From Fed: Tom Keene
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Pacific Investment Management Co.’s Bill Gross said he favors longer-maturity debt with the Federal Reserve likely to seek to narrow the difference between short-and long-term borrowing rates as employment growth stagnates.
“We’ve advocated hard duration; that basically means something beyond five years,” Gross, manager of the world’s biggest bond fund, said in a radio interview on “Bloomberg Surveillance” with Tom Keene and Ken Prewitt. “The front end of the curve, in the U.S. at least, is inert. You have to move out into longer duration, harder duration.”