Pimco Total Return Fund U.S. Treasuries
PIMCO Total Return dumps U.S. govt-related debt
by Jennifer Ablan; Editing by Leslie Adler
(Reuters) – PIMCO’s Total Return Fund (PTTRX.O), the world’s biggest bond fund, has dumped all U.S. government-related securities, including U.S. Treasuries and agency debt, a source familiar with the fund’s holdings said on Wednesday.
In January, Pacific Investment Management Co.’s $236.9 billion Total Return fund slashed its U.S. government-related debt holdings to the lowest level in at least two years and increased cash and debt holdings from other developed nations.
Government-related securities include Treasuries, Treasury Inflation-Protected Securities, agencies, interest rate swaps, Treasury futures and options, and corporate securities guaranteed by the U.S. Federal Deposit Insurance Corp.
The Total Return Fund’s cash holdings had surged to $54.5 billion as of Feb. 28 from $11.9 billion at the end of January.
editors note: PIMCO sees higher inflation, hence higher interest rates. They also see a congress that does not have a clue about markets. As both parties refuse to take heat over budget cuts, the budget deficit increases 4.9 billion a day.
China will be next to dump U.S. treasuries. The American people will be asked to buy Patriotic Treasuries as QE2 becomes QE3. The house of cards is about to collapse.