Kokusai, Pimco Shun U.S. Bonds After Forecasting Dollar Losses

Bloomberg reports:

Kokusai Global Sovereign Open, the world’s second-largest actively run bond fund, is betting against the dollar in 2010.

Bill Gross, who runs the biggest at Pacific Investment Management Co., is scooping up debt in Germany and other developed markets outside the U.S.

They’re shunning Treasuries as the Federal Reserve’s record low interest rates reduce demand for the currency and make yields in other nations more attractive. China, which cut Treasury holdings by the most in five months in November, may pare purchases further on concern the dollar will fall, said Liu Yuhui, an economist at a government-backed research body.