"Old bond king" Gross: Moderately bearish on 10-year US Treasury bonds.

"The Bond King," Bill Gross, co-founder of Pacific Investment Management Company (PIMCO), said that the actual federal funds rate might bottom out in the mid-2027. He also mentioned that he has a moderately bearish view on the 10-year U.S. Treasury bond after the Jackson Hole meeting. In an article posted on the X platform, he stated that the interest rate market trend after the Jackson Hole meeting indicates that the federal funds rate will bottom out at around 3% in about two years. He said, "If that's the case, then a 4% yield on the 10-year U.S. Treasury bond is possible. However, considering the future supply of trillions of dollars, a 4% yield is really hard to imagine." He advised investors to maintain a moderately bearish stance, expecting the 10-year U.S. Treasury bond yield to fluctuate between 4.15% and 4.45% in the coming months. He also mentioned that the current yield "is not cheap, especially after tax deductions." The yield on the 10-year U.S. Treasury bond is currently around 4.3%. Year-to-date, the yield on the 10-year U.S. Treasury bond has decreased by 6.3%, but it has increased by 13.1% compared to a year ago.