Unwelcome Yields
Bernanke told the Senate Banking Committee last week that tighter financial conditions as a result of rising yields over the past two months are “unwelcome.”
The Federal Open Market Committee has kept the benchmark interest-rate target at a record low zero to 0.25 percent since 2008 to support the economy. Investors see a 40 percent chance policy makers will lift the federal funds rate to 0.5 percent or higher by December 2014, compared with 49 percent odds a week earlier, data compiled by Bloomberg show. Policy makers next meet July 30-31.
Gross also added to holdings of mortgage securities in June, the fund’s second-largest holdings. The proportion rose to 36 percent last month, from 34 percent in May.
Over the past five years, the Total Return Fund has returned 7.7 percent, outperforming more than 90 percent of competitors. It gained 0.7 percent over the past year, placing it in the 71th percentile of its category, according to data compiled by Bloomberg. Pimco, a unit of the Munich-based insurer Allianz SE, managed $2.04 trillion in assets as of March 31.