] Bill Gross
is still trying to swim against the bearish tide in the bond market, but he isn't necessarily succeeding.
His expectations were that the fed funds rate will remain low until at least 2016 and that bond yields won't move much higher than current levels, MarketWatch's
Ben Eisen reports, so Gross is a little shocked that the market priced in a 4 percent Fed funds rate in 2018.
However, there aren't any Fed futures contracts listed past August 2016, making Eisen question from where Gross derived the 4 percent figure in the first place. The eurodollar offers one explanation, as those future contracts, projecting the interest rates for dollar deposits outside the U.S. can approximate the feds funds rate, and that almost matches 4 percent, Eisen writes. Eisen reports that Gross did not return a request for comment.
In other Pimco news, MarketWatch's
Paul B. Farrell writes about Pimco's odd couple Bill Gross and CEO Mohamed El-Erian
, whose views appear to diverge on the stock market.
To read more, click here
Stay ahead of the news ... Sign up for our email alerts now