U.S. government debt-market bets on inflation rose to a two-month high last week. The difference between yields on 10- year notes and Treasury Inflation Protected Securities, a gauge of expectations for consumer prices over the life of the debt, widened to 2.24 percentage points on Oct. 28, the most since Aug. 15. The so-called breakeven rate was at 2.14 percent today.
"With fiscal policy in most developed countries incredibly restrictive instead of stimulative, central banks have assumed the helm on their own -- but it has been a long and relatively futile watch," Gross wrote. "Structural growth problems in developed economies cannot be solved by a magic penny or a magic trillion dollar bill."