US bond markets struck by 4% decline of Pimco

Investors in US bonds have received another bearish signal as the world's biggest bond portfolio, th...

Investors in US bonds have received another bearish signal as the world's biggest bond portfolio, the $71.7bn Pimco Total Return Fund, declined by 4% in July, its worst-ever monthly return. The fall saw a rush of fund redemptions, with investors pulling $803m out of the fund during the month, according to estimates by Financial Research Corp. But Pimco manager Bill Gross was not the only US bond fund manager losing money and investors in July, when the bond market lost an average of 3.36% over the month, the worst fall since 1981, according to Lehman Brothers. Bloomberg reported in...