The inability of the government to continue pumping stimulus into the economy could promote a double-dip recession that will mean investment opportunities in longer-term government debt, Pimco's Bill Gross told CNBC.
As inflation becomes less a possibility due to the weakening economy, 10-year notes and 30-year bonds could provide solid investment opportunities, Gross, CIO of the world's largest bond fund, said in a live interview.
"To the extent that we have had a trillion dollars worth of stimulus, from the standpoint of deficits, and more, the government basically has to continue to do that and to add to that in order to keep the economy chugging along," he said. "To the extent that that's limited, to the extent that they pull back on some of those stimulus programs—Cash for Clunkers and those types of things—then the double-dip moves into the realm of possibility."