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PIMCO Takes On More US Debt, While Investors Remain Cautious

Treasury bond

Billionaires and PIMCO investors Jeffrey Gundlach and Bill Gross are eyeing US Treasuries cautiously, but PIMCO isn't. The firm’s Total Return Fund just increased its US government debt holdings to its highest levels in 18 months.

Total Return has $86.4B in assets, making it the world’s largest actively run bond fund, and it boosted its holdings in Treasuries from 36.4% in May to 39.7% in June, Bloomberg reports. Gundlach of DoubleLine Capital doesn’t think that’s a great idea—he says investors who bought up debt last week will find it hard to make money as yields bottom out and begin to rebound.

And Gross of Janus Capital Group agrees with him, saying sovereign yields are near all-time lows in the US and are simply too risky around the world. [Bloomberg]