Gross looks to EMD as treasuries 'to be overvalued for decades'

PIMCO's Bill Gross has urged investors to focus on emerging market debt and shun US government bonds amid low rates and rising inflation which have left treasuries looking "overvalued for decades".

The manager of the world’s largest bond fund, who sold out of all his holdings in US treasury bonds in March this year, said treasuries will continue to shortchange investors even after the end of QE2 stimulus in June. “We have warned for several years of the deteriorating creditworthiness of America’s AAA rating, our de minimis treasury positions had less to do with much more immediate issues than America’s balance sheet prospects. We are highly sensitive to the pocket-picking policies that governments in general deploy to right the ship,” he said. “The argument over whether the end ...