Bond Giant Pimco Buys Treasurys in Recent Weeks
Author: Min Zeng; Mark Gongloff</br></br>After months of deriding U.S. Treasury bonds, Bill Gross and his fund managers at Pacific Investment Management Co. have switched sides.</br></br>Pimco had been the biggest and most vocal of a large group of Treasury bears, predicting that Treasury prices would fall, and yields rise, as the U.S. economy strengthens and the government borrowing binge continued.</br></br>In the opposing camp was Pimco's chief rival, BlackRock Inc., which said in March that it was buying up Treasurys.</br></br>So far, BlackRock's view has proven to be the winning bet. The debt crisis in Europe sparked a global flight to safe-haven assets such as U.S. government debt. Treasury bond prices soared, pushing down their yields to near-record lows.