The market is telling a simple story, says bond manager Bill Gross: Instead of investing, borrow.
"It's like first-grade math," Gross told CNBC's "Power Lunch" on Wednesday. "Here's a non-wonkish statement: When money yields nothing, then it will return nothing. So, when bonds have a zero percent interest rate, or negative interest rate, then there's nothing to gain from owning them."
U.S. Treasury yields are higher than many bonds abroad, with 10-year notes yielding about 1.8 percent Wednesday. That creates the "illusion" of returns, said Gross, who runs the Janus Global Unconstrained Bond Fund, even though Treasurys' inflation rates are closely tied to the yen and German government bonds