Bill Gross, manager of the world's largest bond fund, said on Friday the rally in Treasury yields to 60-year lows reflect a high probability of recession in the United States.

Gross, the co-chief investment officer at Pacific Investment Management Co., which oversees $1.2 trillion, also told Reuters Insider television it is apparent that policy options are limited.

It is increasingly apparent to us that policy options are limited and that economic growth is slowing down, said Gross said. There's no doubt that growth from the standpoint of employment or unemployment and growth from the standpoint of corporate profits is definitely a risk -- whether or not we see a positive 1 percent real GDP number I think is besides the point.

Gross said low Treasury yields are flashing recessionary conditions.

They certainly reflect, in terms of their yields, not only a potential for a recession but the almost high probability of recession and the result of lowering inflation.

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(Reporting by Daniel Burns, Burton Frierson and Jennifer Ablan; Editing by Neil Stempleman)