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Originally Posted by Skybird
It means that traders and investors rate US bonds so negatively now that no rises and interests can be won anymore with trading them. In other words: traders like PIMCO do not find interested buyers anymore.
Bonds from emerging economies and even third world economies are more interesting already. Pimco, so they report, has shifted its business from US bonds to these other bonds in the recent year. To completely abandon trading of US bonds now is just the consistent and final step.
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I think you misunderstand what's going on here. PIMCO is not a broker/dealer. They don't market securities to investors. PIMCO is a mutual fund company - they are money managers. They market their expertise in making prudent investment decisions. They don't inventory bonds for sale and trade like a broker/dealer would. They buy for their investment portfolios. Bill Gross is a fund manager at PIMCO and makes investment decisions for those funds. His belief is that the market is going to face a correction when the Fed removes their support of the market in July.
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In other words: traders like PIMCO do not find interested buyers anymore.
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If that were true, then they couldn't very well have sold off their positions, now could they? Every sale trade has to have a buyer on the other end.