The recent fight over the U.S. federal government's debt ceiling didn't push Bill Gross away from Treasuries. Bloomberg, the Financial Times and the Wall Street Journal all report that the Pimco [see profile] co-chief investment officer increased his flagship Total Return Fund's allocation to Treasuries from eight percent on June 01 to ten percent of the fund's $245 billion on July 31, while also reducing his Treasury derivatives from minus nine percent to minus three percent, swinging the fund's net Treasuries exposure from minus one percent to positive seven percent.

The news of Gross' shift broke yesterday even as markets tumbled in the wake of S&P's Friday downgrade of the U.S., a move which Gross outspokenly praised.

Also last month, Gross cut Total Return's cash and money market holdings from 29 percent to 15 percent. 

Edited by: Neil Anderson, Managing Editor


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