Bond Bubble Dismissed as Low Yields Echo Pimco’s New Normal – Bloomberg 06-11-12

Salient to Investors:

Moody’s John Lonski says G-7 bond rates indicate the markets don’t expect economic growth to exceed 3 percent.

Blackrock’s Jeffrey Rosenberg says the greed that produces bubbles is absent.

Pimco’s Bill Gross says global bond markets are turning ‘Japanese’.

UBS’ George Magnus says we are replicating the Japanese experience.

Bianco Research’s James Bianco says the balance sheets of the world’s six biggest central banks have more than doubled since 2006 to $13.2 trillion. The bond market has no value but the central banks don’t care about value right now.

Predictions:

Pimco’s Mohamed El-Erian says we may be in a synchronized slowdown in global economic growth for a while.”

Marc Faber expects the government bond bubble to burst sooner rather than later, because the consensus is to buy U.S. Treasuries.

Scottish money manager Stuart Thomson doesn’t see a bear market because yields are extremely low for a very good reason, fear.

Read the full article at http://www.bloomberg.com/news/2012-06-11/bond-bubble-dismissed-as-low-yields-echo-pimco-s-new-normal-1-.html