Bill Gross is shorting US Treasurys and says inflation will be as high as 4% in coming months

FILE PHOTO: Billionaire investor Bill Gross listens during the Milken Institute Global Conference in Beverly Hills, California, U.S., May 3, 2017. REUTERS/Lucy Nicholson/File Photo

Billionaire “Bond King” Bill Gross told Bloomberg he is short US Treasurys and is expecting inflation to spike up in the US in the near future.

The PIMCO co-founder said in a Bloomberg TV interview he was short US Treasurys heading into the sell-off last week where the 10-year Treasury rose above 1.6% and prices fell. On Wednesday, the yield on the benchmark 10-year Treasury note hit 1.67%, a level not seen since mid-January 2020.

He’s still short Treasurys, and he also expects inflation to rise above the Fed’s target to 3-4% in the next few months as nearly $2 trillion in fiscal stimulation enters the market and household income goes “gangbusters.”

“There’s no reason to expect that inflation at least, not necessarily treasuries, but inflation at least will be screaming higher over the next several months and that’s what some investors are anticipating,” Gross said.

He added: “Inflation, you know, currently below 2% now is not going to be below 2% in the next few months. I see a 3% to 4% number ahead of us.”

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