Bill Gross spoke to Bloomberg Television's Tom Keene this afternoon to discuss the Treasuries market stating, We are certainly underweight Treasuries.
If Bill is advising people to get out of US treasuries, would USD/JPY benefit the most?
Lower bond prices=higher yields=lower YEN=higher USD/JPY and YEN crosses (EUR/JPY, AUD/JPY, NZD/JPY, CAD/JPY)
Bill Gross is not alone in his prediction.
Jim Rogers spoke at a conference in Edinburgh 2 weeks ago stating, I will be shorting US bonds. In my view that's coming to an end...the bond bull market is coming to an end. If any of you have bonds I would urge you to go home and sell them. If any of you are bond portfolio managers I would get another job, he said.
Bonds in the US have been in a bull market for 30 years, Rogers said.
See below for Bill Gross's interview: