Does ECB Easing Pose a Risk to Bond Investments?
Fund manager Bill Gross said he switched positions on European debt following a Bloomberg report that the European Central Bank will probably gradually wind down bond purchases before the conclusion of quantitative easing. “The minute it posted, the 10-year bund contract dropped almost a point,” Gross said in an interview with Bloomberg Television’s Erik Schatzker on Tuesday. The report “caused me to basically reverse positions in terms of being long duration to being short duration.” G Plus Economics Managing Director Lena Komileva discusses the outlook for bonds and negative yields with Bloomberg's Anna Edwards and Manus Cranny on "Countdown." (Corrects wording in the headline)