Bond king Bill Gross says 'stay mildly bearish' on US10Y post Jackson Hole

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The effective federal funds rate might bottom in mid-2027, according to retired PIMCO co-founder and bond market expert Bill Gross.

In a post on X.com (formerly Twitter), he said that the post-Jackson Hole interest rate market suggests a 3% Fed funds bottom in about two years.

“If so, then 4% 10-year (US10Y [https://seekingalpha.com/symbol/US10Y]) is a possibility,” he said. “Still, with trillions in supply ahead, 4% is hard to imagine.”

He told investors to stay “mildly bearish” with an expected range of 4.15%-4.45% for the U.S. 10-year bond yield (US10Y [https://seekingalpha.com/symbol/US10Y]) over the next few months, adding that the current yield – 4.29% as of Monday early trade – is “no bargain especially after taxes.”

The 10-year yield is currently down 3 basis points from the open. It has also declined 6.3% year-to-date, although it has increased 13.1% from a year ago.

Investors can see how yields are trading across the entire curve here on Seeking Alpha’s bond page [https://seekingalpha.com/etfs-and-funds/etf-tables/bonds#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews].

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MORE ON UNITED STATES 10-YEAR BOND YIELD:

* Santa Claus Is Coming [https://seekingalpha.com/article/4816489-santa-claus-is-coming]
* Weekly Market Pulse: A One-Handed Economist [https://seekingalpha.com/article/4816393-weekly-market-pulse-a-one-handed-economist]
* The Downfall Of The U.S. Dollar - Peter Schiff's Prediction [https://seekingalpha.com/article/4814921-downfall-of-us-dollar-peter-schiff-prediction]
* Cleveland Fed Pres. Hammack: Inflation is too high and trending higher [https://seekingalpha.com/news/4488419-cleveland-fed-pres-hammack-inflation-is-too-high-and-trending-higher]
* The Fed is likely to begin a sequence of interest rate cuts - Rosenberg Research [https://seekingalpha.com/news/4488406-the-fed-is-likely-to-begin-a-sequence-of-interest-rate-cuts-rosenberg-research]