Pimco investment strategy reverses course

Asian Investor reports:

The investment strategy of fixed-income specialist Pimco has changed over the past four weeks from being weighted towards US Treasuries to emphasising spread products.

In an interview with AsianInvestor, Bill Gross, managing director and CIO in Newport Beach, California, says, "US Treasuries are totally overvalued," noting the current 375 basis point yield for 10-year US Treasury bonds is unlikely to last in the face of rising inflation.

Interest rates should be going higher.