PIMCO Reduce Treasuries Holdings On Fed Taper Outlook

Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., cut holdings of Treasuries and U.S. government debt in February as turmoil in Ukraine fueled haven demand and investors bet the Federal Reserve will conclude bond purchases this year.

The proportion of the securities in the $236 billion Total Return Fund (PTTRX) was 43 percent, the company’s website showed. That compared with 46 percent in January, which was the most since at least July, when Pimco revised how it classifies assets. Mortgage debt accounted for 29 percent in February, the least since July 2011, compared with 36 percent the previous month.

The company’s U.S. credit category, which includes investment-grade and high-yield securities, was unchanged at 9 percent. Holdings of money-market debt and cash-equivalent securities were at zero, versus negative 8 percent in January.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu