Treasury yield squeeze suggests interest rates to stay low via HousingWire

The rally in U.S. Treasurys that pushed 10-year yields down to a level not seen since late 2013 shows the belief that the Federal Reserve will keep rates low in a slowly growing global economy, Bill Gross, chief investment officer at Pimco told MarketWatch.

“2.50% currently reflects a 0.5% new neutral rate and seems fair for now,” Gross said.

MarketWatch goes on to say, “The new-neutral outlook published by Gross and Pimco adviser Richard Clarida suggests that the global economy is transforming from a period of recovery after the financial crisis…toward stability that is characterized by modest economic growth over the next three-to-five years.”

Read more...Treasury yield squeeze suggests interest rates to stay low | 2014-05-16 | HousingWire