- After months of deriding U.S. Treasury bonds, Bill Gross and his fund managers at Pacific Investment Management Co. have switched sides. Pimco had been the biggest and most vocal of a large group of Treasury bears, predicting that Treasury prices would fall, and yields rise, as the U.S. economy strengthens and the government borrowing binge continued.
With interest rates this low, it would be crazy not to borrow an immense amount of money.