Bill Gross Battles Dealers on Outlook as Treasuries Gain

The world’s biggest bond dealers dispute Bill Gross’s assertion that the $9.13 trillion market for U.S. Treasuries offers little value.

While Gross, who runs Pacific Investment Management Co.’s $236 billion Total Return Fund, is betting against government debt, the 20 firms that trade with the Federal Reserve predict yields on the benchmark 10-year Treasury note will hold below 4 percent for a third straight year for the balance of 2011.