Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., raised holdings of Treasuries and government-related debt in January as the U.S. bond market had the best start to a year since 2008.
The proportion of the securities in the $237 billion Total Return Fund (PTTRX) was 46 percent last month, compared with 45 percent in December, the company’s website showed yesterday. It was the firm’s biggest holding of the securities since at least July, when it revised how it classifies assets. Gross said this month U.S. 10-year yields can fall further if labor growth remains subdued and a key inflation gauge stays below the Federal Reserve’s target. Mortgage debt accounted for 36 percent in January, compared with 35 percent the previous month.
“Pimco finds more solace at the front end of the curve,” Newport Beach, California-based Gross said yesterday during an interview on Bloomberg Television with Trish Regan, referring to three-, four- and five-year securities. They are “a more stable bet going forward.”