(Bloomberg) -- If billionaire bond investor Bill Gross is right, most of this year's excitement in the Treasury market is behind us and yields won't see a substantial move from here.
The Janus Henderson fund manager doesn't see a blowout in yields to much above the 3 percent level, which was briefly pierced last week for the first time since 2014. However, the Federal Reserve's commitment to gradually tighten monetary policy coupled with the U.S. government raising more cash by selling bonds will continue to weigh on prices.
“Supply from the Treasury is a factor in addition to what the Fed might do in terms of a mild, bearish tone for U.S. Treasury bonds,” Gross told Bloomberg TV. “I would expect the 10-year to basically meander around 2.80 to perhaps 3.10 or 3.15 for the balance of the year. It's a hibernating bear market, which means the bear is awake but not really growling.”
--With assistance from Julia Chatterley
To contact the reporter on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.net.
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Adam Haigh, Ravil Shirodkar
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