The Fed will probably be on hold for several months, though traders have gone too far in betting the next rate increase won’t come until 2018, Mark Kiesel, one of the three managers for the Total Return Fund, said last week.
“The probability of them hiking is higher than what the market’s priced in,” Kiesel said on Bloomberg Television.
DoubleLine’s Gundlach said in a webcast Tuesday there’s a “mass psychosis” among investors seeking yield. “Call me old-fashioned, but I don’t like investments where if you’re right you don’t make any money.”
Janus’s Gross said low yields “are not up my alley,” on Bloomberg Television last week. Morgan Stanley, one of the 23 primary dealers that underwrite U.S. debt, followed by telling clients it’s turning neutral on U.S., Japan, German and U.K. bonds after last week’s rally.