With yields rising and investors fleeing bond funds in droves of late, it’s becoming conventional wisdom that the bull market in bonds is over. No less an authority than PIMCO’s Bill Gross, aka ‘The Bond King’, recently declared “the secular 30-year bull market in bonds likely ended” on April 29.
Supporting that view, the yield on the benchmark 10-year Treasury has jumped from a low of 1.62% on May 2 to as high as 2.27% this month and currently sits at 2.18%. In reaction, yields have risen and prices have fallen for all fixed-income securities and investors have pulled $17.7 billion from bond funds in the two weeks ended June 12, The Wall Street Journal reports.
But, to cite Mark Twain, reports of the death of the bond bull market have been “greatly exaggerated,” according to Gary Shilling, president of A. Gary Shilling & Co., and author of The Age of Deleveraging.
“A lot of people over the years have declared thisRead More »from Bond Bull Market Isn’t Dead Yet, Longtime Bond Bull Says