Yields on the 10-year Treasury note dipped back below 2% earlier this week on renewed concerns over the Eurozone debt crisis and weak U.S. jobs data.
In March, Gross boosted mortgage investments to 53% of PIMCO Total Return Fund, signaling his expectation the Fed will add these securities in a new round of stimulus, Ignites.com reports. In a recent interview, Gross said the central bank could announce further support for the mortgage market rather than trying to drive down Treasury rates.
PIMCO Total Return ETF is up 1.4% for the trailing month, compared with a 0.3% gain for the Barclays Capital US Aggregate Bond Index, according to Morningstar.