PIMCO co-chief investment officer William Gross told Reuters Insider television Friday that the rally in Treasury yields to 60-year-lows indicates a high likelihood of another U.S. recession.
"It is increasingly apparent to us that policy options are limited and that economic growth is slowing down," said Gross, whose Pacific Investment Management Co. is the world's largest bond fund, controlling $1.2 trillion. "There's no doubt that growth from the standpoint of employment or unemployment and growth from the standpoint of corporate profits is definitely a risk -- whether or not we see a positive 1 percent real GDP number I think is besides the point."
Gross said policy options are limited and low Treasury yields indicate recessionary conditions.
"They certainly reflect, in terms of their yields, not only a potential for a recession but the almost high probability of recession and the result of lowering inflation," Gross said.
