PIMCO’s flagship Total Return Fund had redemptions of $9.6 billion in June, the largest outflow on record, according to Morningstar.
A redemption of that size would be devastating to nearly any fund but PIMCO manages massive amounts of money and the total return fund still has $268 billion. Meanwhile, the Fed continued to buy $85 billion/month of bonds in June, so PIMCO has a patsy to sell to.
10-year yields are flat on the day at 2.47%. I expect yields to slide back to 2.20% before rising once again but I don’t know anyone who is recommending long-term bonds for the long term (not even Gross).
