Bund buyers beware: Bill Gross is coming.
The Janus Capital bond guru believes that German debt is representing a huge opportunity—for short sellers. The surge in the 10-year version of the security and its tumbling yields have ripened them up for a bet in the other direction, Gross said on Twitter: ( Tweet This )
Bunds were yielding 0.94 percent in Tuesday morning trade, up 19.8 percent on the session but down nearly 83 percent year to date.
Traders have been piling into the nation's debt ever since European Central Bank President Mario Draghi announced his intention to commence U.S.-style quantitative easing, a debt-buying program aimed at keeping yields low and goosing the financial markets with liquidity.
"It's just a question of when," Gross said during an interview on CNBC's "Power Lunch." "It's certainly a trade that doesn't cost you anything in the short term, because it doesn't yield anything and it has the ultimate potential of a 10 or 15 percent (return) over a one- or two-year period of time."