Gross: US debt limit row will cause sell-off in treasuries

PIMCO bond guru Bill Gross has warned the debate on the US debt limit between Congress and Barack Obama's administration will cause treasuries to fall.

The manager of the world's largest bond fund says the Republican's strategy is "reckless" and US treasuries will suffer as the debate heats up. Gross says the assets "will sell off as this gets more press and with more invective", reports the Associated Press. He adds: "Investors like us, we sell now." The federal government's current debt limit is $14.3trn, which means it can borrow another $234bn. However there are concerns this could be reached as early as March. Congress has raised the limit 74 times in the past 70 years but fears a further will cause a Greek-style financial cr...