Federal Reserve Chairman Ben Bernanke's semi-annual testimony on Wednesday drew swift advice from bond guru Bill Gross: time to buy five to seven-year Treasurys since interest rates are likely to be on hold for some time.
"Focus on the policy rate… Focus on the policy rate… Focus on the policy rate…Buy 5-7 [year] Treasurys," Gross, who heads fixed-income giant Pimco, tweeted late Wednesday after Bernanke told the U.S. Congress that there was no committed timetable to scaling back the Fed's $85 billion-a-month bond-buying program.
"Focus on the policy rate… Focus on the policy rate… Focus on the policy rate…Buy 5-7 [year] Treasurys,"
The U.S. Treasury market responded to Bernanke's comments with relief. The benchmark 10-year yields hit a
The bond market has been hit hard by fears that the Fed could start to unwind its monetary stimulus sooner rather than later and yields spiked higher after comments from Bernanke in May raised the possibility of the central bank scaling back its bond buying program later this year.