PIMCO Total Return dumps U.S. government-related debt | Reuters

The world's largest bond fund has gone ultra bearish on the United States, dumping all of ultra bearish on the United States, dumping all of Link this ultra bearish on the United States, dumping all of its U.S. government-related debt holdings. its U.S. government-related debt holdings. digg The move by Bill Gross's $236.9 billion PIMCO Total Return fund Emai completed last month comes in the wake of a vicious Treasury market Print sell-off and just days after he questioned who will buy Treasuries once Print sell-off and just days after he questioned who will buy Treasuries once the Federal Reserve halts its latest round of bond purchases in June. the Federal Reserve halts its latest round of bond purchases in June. Related Topics Gross, who also helps oversee a $1.1 trillion investment portfolio as Personal Finance PIMCO's co-chief investment officer, has repeatedly warned against U.S. deficit spending and its inflationary impact, which undermine the value deficit spending and its inflationary impact, which undermine the value Stocks of government debt and push up yields as investors demand more Stocks of government debt and push up yields as investors demand more of government debt and push up yields as investors demand more PIMCO Total Return compensation for risk PIMCO Total Return compensation for risk Fund Fund PTTRX.O Over the last five months, worries over the ballooning U.S. budget gap PTTRX.O Over the last five months, worries over the ballooning U.S. budget gap $10.90 +0.03 +0.28% estimated at $1.645 trillion for 2011, political stalemate in Washington +0.03 +0.28% estimated at $1.645 trillion for 2011, political stalemate in Washington 03/09/2011 over how to narrow it and inflationary fears have all contributed to a 03/09/2011 over how to narrow it and inflationary fears have all contributed to a steep sell-off in Treasuries. The benchmark 10-year note has seen its yield, which moves nversely to price, rise more than one percentage point since early October to 3.46 percent by Wednesday's close. Gross expects further carnage. Just last week, he told Reuters Insider that a 4.0 percent yield for 10-year notes is a "rational expectation" if the Fed "disappears as the buyer of last resort."

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