Bill Gross Blames Hedging Costs as U.S. Treasury Rout Deepens
- European, Japanese buyers being ‘priced out of market’: Gross
- Hedging costs are swelling as cross-currency basis plunges
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On a day where yields on 10- and 30-year Treasuries surged to multi-year highs, Bill Gross sees dimming demand from foreign investors adding to the pain.
His comments come at a particularly tough times for bond bulls. The yield on benchmark 10-year Treasuries reached about 3.16 percent Wednesday, the highest since 2011, amid gains in stocks and strong economic data. Thirty-year yields touched around 3.32 percent, the highest since 2014.