Long Bonds Lead the Way as Gross Says Don’t Fight Central Banks
- U.S. 30-year debt leads rally as Fed trims rate-hike outlook
- BOJ decision means ‘limited downside’ for bonds, Gross says
Divided Fed Leaves Rates Unchanged
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There’s one message that Bill Gross took away from a day dominated by two of the world’s most important central banks: longer-dated debt is back in vogue.
U.S. 30-year Treasuries led a rally Wednesday after the Federal Reserve held off on raising interest rates. Officials indicated a hike later this year is likely, although they lowered projections for 2017 and beyond. In Japan, longer-maturity obligations also fared best after the Bank of Japan shifted the focus of its monetary stimulus to controlling bond yields. The central bank said it would aim to keep 10-year yields around current levels.