Bill Gross Sees Higher Long-Term Yields Amid Reflation
This article is for subscribers only.
Long-term bond yields will be higher than short-term rates in the U.S. and Europe because of reflation, according to Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co.
Bond yield curves will be “very steep” for “a very long time,” Gross wrote in a Twitter post yesterday. A period of reflation is under way, he wrote. Investors should expect “higher long rates” and “low short rates,” according to Gross, who is based in Newport Beach, California.