Salient to Investors:
Bill Gross at Pimco increased holdings of Treasuries for the first time since April – to 24 percent of Total Return Fund assets last month from 20 percent in September – mortgages were reduced to 47 percent from 49 percent in September. Net cash-and-equivalent assets fell to negative 9 percent in October from negative 6 percent in September.
Gross said 10-yr notes rose in part this week on a bid based upon the Bernanke expectation for easy money as far as the eye can see. Gross said investors should buy municipal bonds, intermediate Treasuries and TIPs.