Gross Boosts Treasuries 1st Time in 4 Months as QE3 Looms
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Bill Gross at Pacific Investment Management Co. boosted holdings of Treasuries for the first time in four months and kept mortgages near a three-year high, setting up the world’s biggest bond fund for potential gains from further monetary easing by the Federal Reserve.
Gross raised the proportion of U.S. government and Treasury debt in the $260 billion Total Return Fund to 35 percent in May, the first increase since January and up from 31 percent of its record asset holdings in April, Newport Beach, California-based Pimco said on its website yesterday. Holdings of mortgages dipped to 52 percent from 53 percent in April.