Gulf of Mexico Oil Spill Blog Pimco Total Return Fund U.S. Treasuries

Pimco Total Return Fund U.S. Treasuries

Pimco Total Return Fund U.S. Treasuries

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.

source: UPDATE 1-PIMCO Total Return dumps U.S. govt-related debt| Reuters

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.

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