Pimco has increased its holdings of U.S. treasuries to the highest level in five months according to the Wall Street Journal.
Note this is something that David Rosenberg had insinuated was happening a few days ago.
More importantly, the latest Pimco move represents a substantial about-face for the company, which has been warning about inflation and risks to U.S. creditworthiness for some time now.
Basically, they were bearish in regards to U.S. treasuries and had pared back. Yet they're now betting squarely on deflation and tame treasury yields by buying bonds at what remain historically low interest rates.
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Full story at http://feedproxy.google.com/~r/businessinsider/~3/NVVwR1rsJAY/pimco-has-flip-flopped-and-is-loading-up-on-us-treasuries-2010-6
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