“So rather than getting nothing, we prefer to move into a two to three-year space and get … something for our clients,” Gross told CNBC. “But it’s not an endorsement for Treasuries. They have been more of an insurance policy than an investment. When Europe heads downhill or U.S. unemployment signals slow growth, they rally as a safe haven.”
However, Treasury yields are so low that it will be difficult for investors to meet their goals, Gross said. Bond yields and prices move in opposite directions.
Pimco is planning an ETF version of Total Return Fund. [Pimco Readies ETF]
iShares Barclays 20+ Year Treasury Bond
