Pimco's Bill Gross has been grossly off

The bond market has been in a serious funk of late, with yields on the 10-year Treasury note hitting a five-year high yesterday. There are any variety of explanations floating around out there, including a growing realization that the Fed isn’t close to cutting its target rate, rumors of less demand from China and, my personal favorite, the prouncements of Bill Gross, manager of the world’s biggest bond fund, that Treasuries are headed for a bear market. In an outlook for the $100 billion plus PIMCO Total Return Fund (Symbol: PTTAX), Gross recently raised his projected range for 10-year treasury yields to a high of 6.50% over the next few years.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.