Salient to Investors:
Bill Gross at Pimco cut holdings of Treasuries but says the Fed is unlikely to reduce QE in the near-term, and says he is sticking with bonds as long as Fed does. Gross has been advising investors to sell riskier assets and buy government debt, including inflation-linked securities and nominal Treasuries, as central banks pursue unprecedented stimulus measures.
Gross cut his holdings of non-US developed nations’ debt to 7 percent in May, the lowest level since August, from 10 percent in April, investment-grade debt to 6 percent from 7 percent, and emerging-market debt to 7 percent from 8 percent, and increased net cash-and-equivalents to zero percent from negative 8 percent.
The median economist expects the Fed to reduce its bond purchases to $65 billion a month at its Oct. 29-30 meeting.
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