If PIMCO’s Gross was expecting deflation/ie lower int. rates...would he not have held onto the bonds?..........Bonds go up in value as interest rates decline in a deflationary environment...
“If PIMCOs Gross was expecting deflation/ie lower int. rates...would he not have held onto the bonds?..........Bonds go up in value as interest rates decline in a deflationary environment...”
Interest rates are close to zero right now. They cannot go any lower. That’s why bonds have been such a nice investment for the past two years. The Fed has lowered interest rates so low that bond prices have gone up. The reverse will be true also.