NEW YORK
Investors can rattle off a long list of reasons to be avoid Treasurys. They are paying next to nothing and are bound to plunge whenever the value of the interest started to climb from historical levels low. It seems there's nothing like Treasurys, but everyone continues to buy them anyway.
"Most of our favorites are the assets of Treasurys," said Christine Hurtsellers, Chief Investment Officer for fixed income at ING investment management during a press conference recently. "We still have a lot, but it is difficult to make an argument for them."
This is a complicated issue for bond fund manager at the time when everyday Americans believe them with more of their savings. Among investors, there is a strong belief that Treasury prices should fall and encourage interest at some point. But those who are betting on financial markets to collapse this year.
Bill Gross, bond-world version of wise investment Warren Buffett, down almost all Treasury holdings of the Fund which he managed at Pimco in early 2011. He argued that if the Republic lifting limits on government loans, the State will take the risk of default. Borrowing rates will spike as investors dropped world U.S. government debt, as they have in Europe.