Gross: Few scenarios where German bunds do well

PIMCO's Bill Gross is wary of German bunds, saying there are few scenarios which they can do well and eurozone turmoil is hurting German balance sheets every day.

Gross, who manages the $250bn PIMCO Total Return fund, said Germany is a credit risk and an unattractive market that is a ‘tight and shrinking shirt.' "I would be leery of German bunds simply because there are a few scenarios in which they can do well," he said, speaking to Bloomberg. Ten-year bund yields fell about three basis points to 1.41% today, according to Tradeweb. They are sitting near record lows amid a move by investors to seek out safe havens for their capital, but Gross said they no longer provide protection because of the surge in prices and ongoing reliance on Germany f...