The Bond King has been driving the QE3 bandwagon all summer. Now, lo and behold he has been dumping bonds into the market at the same time.
Gross’ flagship Total Return Fund cut Treasury allocation to 21% in August from 33% in July.
That might not be so bad if he was buying MBS (which is what Bernanke will buy) but he isn’t. Holdings of mortgages fell to 50% from 51% in the month.
In his defense, you have to be crazy to think buying T-notes at 1.75% will make money. And he has also been talking about getting out of Treasuries.
