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Is This Why Bill Gross Is Now Buying Government Bonds?

By BondsApr 14, 2013 04:28AM GMT
Is This Why Bill Gross Is Now Buying Government Bonds?
By   |  Apr 14, 2013 04:28AM GMT

CNBC broke the story last Wednesday that PIMCO’s Bill Gross was buying Government bonds (see story here)

Why does he like bonds now? Could part of the reason be the patterns and bond sentiment in the 2-pack below?

IShares Brclys
IShares Brclys

The charts above reflect that bullish flag patterns in the iShares Barclays 20+ Year Treasury Bond ETF (TLT) and iShares Barclays 7-10 Year Treasury Bond ETF (IEF) could have formed and bullish sentiment is now at levels where prior rallies in bonds took place. Bonds have done well since, making almost 25% of SPY’s gains on the year, in a few days!

Another reason Bill Gross could be buying bonds is the weakness/breakdowns in the Commodity complex reflected in the 4-pack below:
Green Haven
Green Haven

If Gross is right about a bond rally, could a breakdown in Copper and Crude Oil put downside pressure on SPY at all-time highs? Stay tuned.

Is This Why Bill Gross Is Now Buying Government Bonds?

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Is This Why Bill Gross Is Now Buying Government Bonds?

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