Billionaire investor says the 25-year bull run for bond markets is over as U.S. Treasury yields climb
The bond bear market is finally upon us after more than 25 years, bond guru Bill Gross said Tuesday.
Thought to be triggered by the Bank of Japan’s tapering of bond purchases, his claim is making waves in the investment community and coincides with central banks increasingly moving away from global bond markets.
The call was released in a tweet from the account of Janus Henderson Group, Gross’s investment firm, saying: “Bond bear market confirmed today. 25 year long-term trendlines broken in 5 (year) and 10 (year) maturity Treasuries.”
The benchmark 10-year U.S. Treasury yield rose to its highest level since March Tuesday, surpassing 2.55 percent. It was trading close to 2.5586 percent on Wednesday morning.
Gross’s sentiment is not universally shared, however, with many investors warning it’s too early to call an end to the near three-decade bull run for bonds. Others still suggest that climbing yields might actually help stocks.