Pimco sells QE2 Treasury
The Federal Reserve has purchased the $ 300 billion Treasury bonds year last QE policy should purchase another round. Photo: Getty Images
"The challenge now is the extent of policy measures can be taken by the United States is rather limited," Douglas Hodge, CEO of the Pimco said Bloomberg interview the world knowledge forum in Seoul on Thursday.
Made comments echo the concerns on the record-low yields of the Treasury Board that has seen the demand for the United States bonds decline as investors seeking returns higher commodity and actions.
Forecast more Fed stimulus to stimulate greater economy in the world has pushed the dollar to a minimum of 10 months against a basket of currencies and prices or to a new record of $1,380.32 ounce. oil crude and grain has also increased.
"There is virtually no rate of interest, so all the world in commodity and stock market", Ronald Leung Lee Cheong gold distributors in Hong Kong told Reuters.
Pimco believes that the developed economies will suffer a slow and below-average growth returns and focuses on sovereign debt in emerging markets, such as the India and China.
"Even if the EQ [quantitative easing] process is great and rates decreased further, in our opinion, we are going to approach the end of the demonstration of the bond market"said Mr. Hodge""
"Where we are sitting, it is very difficult to propose it will do this kind of price satisfaction we saw in bonds for 12 to 24 months."
Mike Lenhoff, Chief market strategist at Brewin Dolphin in London is list.it agree a strategy entitled note what QE good do?, he wrote: "" If the Fed Announces EQ program after the next meeting, how could react markets face? I suspect that the Treasury market would sell off on the view that it was better travelled are arrivésils are not likely to resist taking profits ".".
He said that QE is likely to be regarded as positive for economic growth and the benefits of business that would benefit actions.
"Evaluations have swung in favour of actions, even with a few bond, yields rise assessments are always likely to promote their strategic asset of choice - even if it leads to yields higher on obligations," he said
As for gold, he said: "the bubble will continue to swell, but which will invoke the top".
Sterling also benefited from the weakness of the dollar Thursday, rising above $1.60 for the first time since the end of January.
However, Geraldine Concagh, an economist at IBA Group in Dublin the Treasury, said: "Sterling has problems of his own cause speculation the Bank of England could also introduce quantitative easing more."
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