"And many thought Bill Gross was only posturing when he said he is getting the hell out of dodge. Based on still to be publicly reported data by Pimco's flagship Total Return Fund, the world's largest bond fund, in the month of January, has taken its bond holdings to zero (and -14% on a Duration Weighted Exposure basis). The offset, not surprisingly, is cash. After sporting $28.6 billion in "government related" securities, TRF dropped to $0.0, while its cash holdings surged from $11.9 billion to a whopping $54.5 billion (based on total TRF holdings of $236.9 billion as of February 28). This is the most cash the flagship fund has ever held, and the lowest amount in Treasury holdings since January 2009 before it was made clear that the Fed was going to adjust QE1 to include Treasurys in addition to Mortgage Backed Securities." CONTINUES HERE
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...as its constant, Cassandra-like, doom'n'gloom shilling isn't easy to swallow whole, but if this article is even half true it's a seriously interesting situation. Inflation rally, anyone? Here's an excerpt, click through for the rest:
By the way, whoever this version of Tyler Durden is, he's wrong about the direct consequewnces of non-QE3...you people still can't get it into your head that the world doesn't revolve around the USA any longer, can you?