Salient to Investors:

Bill Gross at Pimco recommends avoiding longer-term Treasuries because of steps to boost the economy. Guy Davidson at AllianceBernstein said longer bonds have much more downside than upside, and recommends switching to the 10-yr to 15-yr maturity range.

The median economist expects the Fed to continue to buy Treasuries at least through Q1 2014. The median forecaster expects yields on 30-yr Treasuries to rise to 3.3 percent in a year versus 2.84 percent yesterday.

Peter Hayes at BlackRock is a bit more cautious on the market given its recent run. Dan Heckman at US Bank Wealth Mgmt said bonds maturing beyond 20 years are extremely expensive.

30-yr benchmark munis yielded as little as 1.08 percent more than 10-yr maturities this month, the smallest gap since October 2008. Yields on 20-yr GO bonds are the lowest since 1965.

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