Bonds
Bill Gross Says 10-Year Treasuries Are ‘Overvalued’
- Says 10-year Treasuries are too expensive, yield at 4.5% fair
- Equity risk premium suggests stocks are also overvalued
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Bill Gross, the one-time bond king, said stock and bond bulls are wrong, as both markets are “overvalued.”
The former chief investment officer of Pacific Investment Management Co., speaking in an interview on Bloomberg Television, said the fair value of the 10-year Treasury yield is about 4.5%, compared with the current level of around 4.16%.