Long-Term Interest Rates Buck Conventional Wisdom

Most economists have been wrong on the direction of long end of the yield curve,as of late.

Bill Gross, chief investment officer at Newport Beach-based Pacific Investment Management Co. and one of the world's top authorities on interest rates, says it's conceivable that the rate on the 10-year U.S. Treasury note, a benchmark for mortgages and other long-term interest rates, could drop to 3% in the next three to five years. Currently it's just under 4%.

Wait until the 30 year bond comes back next year.LATimes