Never Say Never, Shorts Are Concentrating In Bond Market

The debt issuance game is so important that semantics matter. The parsing of Bill Gross's words represents a sign of respect for being one of the best of the best in the debt market. The message of the market, however, supercedes the words of any individual, fund, or firm.

The message of the market reflects the actions of capital. Capital stalks the market in size away from the headlines. What's it doing? It's beginning to concentrate on the short side despite the semantics game.

US Treasury Bond 20YR+ (TLT) And Bond Diffusion Index (DI)


Headline: PIMCO's Gross says firm "never" short U.S. Treasuries: report

PIMCO's Bill Gross, manager of the world's largest bond fund, said on Monday it was a "misconception" the firm was short on U.S. Treasuries, saying the fund never actually bet against U.S. Treasuries.

Gross told CNBC the firm was "very underweight" the U.S. Treasury market and holds other bonds that are doing better than Treasury securities.

The company's website in May showed PIMCO's $240 billion Total Return fund (NASDAQ:PTTRX - News) was short U.S. government-related debt -- this includes Treasuries, TIPS, agencies, interest rate swaps, Treasury futures and options, and FDIC-guaranteed corporate securities.

Source: finance.yahoo.com