The former bond king believes that the 10-year U.S. Treasury yield at 4% is "overvalued" and is more bullish on inflation-protected bonds

Huitong Financial News Former bond king Gross recently said that he is staying away from U.S. Treasury bonds after issuing a correct prediction about U.S. Treasury yields at the end of last year. HE POINTED OUT THAT THE 10-YEAR U.S. BOND IS "OVERVALUED" AND THAT IF YOU NEED TO BUY BONDS, A SIMILARLY MATURED INFLATION-PROTECTED BOND (TIPS) WITH A YIELD OF 1.80% IS A BETTER CHOICE. He made millions of dollars late last year after making a big bet that the Fed would pivot to cutting interest rates in 2024. Global bonds rebounded on Monday after falling in the first days of 2024 on fears that the rebound in late 2023 would be too large and too fast. The yield on the 10-year Treasury note rose 17 basis points last week, its biggest gain since October, as strong labor market data prompted traders to reduce bets that the Fed will ease quickly.