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Stock impact report

Bill Gross favors short-end Treasuries and still eyes MLPs [Seeking Alpha]

Western Midstream Partners, LP Common Units Representing Limited Partner Interests (WES) 
Last western midstream partners, lp common units representing limited partner interests earnings: 2/27 04:05 pm Check Earnings Report
Company Research Source: Seeking Alpha
In a recent blog post, Gross, who used to managed the world's largest bond fund at PIMCO, noted that the 10-year Treasury yield ( US10Y TBT TLT ) is right where it was 20 years ago at 4.2%. "Too much supply," he added. "And real rates at 2% imply a 2.3% breakeven rate against inflation with 10-year nominals at 4.3%." "If inflation gets to 2.3% by the end of the year (not likely in my book) what can the 4.3% yield do?" Gross said. "I don't understand any of the new bond gurus on CNBC when they tout bonds over the last 12 months." "Bet on a flattening of the negative yield curve. Sooner or later it must go positive if the economy is to stay positive. I am long 2's ( US2Y SHY ) and short 5's ( US5Y IEI ) and 10's." Gross previous recommended MLP pipelines and regional banks. "MLPs have never been covered by the press and are unowned due to legal constraints by most mutual funds," he said. "That and higher oil prices have led to 28% average gains along with 9-10% tax-deferred y Show less Read more
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