Rates on short-dated bills have soared ahead of the so-called ‘X-date’ early next month, after Treasury Secretary Janet Yellen warned last week that the government could run out of cash as soon as June 1.
Gross, known in the investment world as the Bond King, has been a critic of low interest rates, saying they’ve discouraged saving and contributed to the craze around meme stocks and NFTs.
Janus Henderson said its global macro fixed income team will take over the management of Gross's portfolios.
While the US Fed plans more rate hikes later this year, it is the policy outcome of two other central banks that are more important and should be looked out for, says Bill Gross.
The Fed's thinking stems from a trickle-down notion of monetary policy that suggests great financial wealth leads directly to higher investment in the real economy, Gross said on CNBC's "Power Lunch."
"The markets are entirely different and it would pay to travel to Mars as opposed to stay on Earth, because the returns here are very, very low," the manager of the Janus Capital Unconstrained Bond Fund, said on CNBC's "Power Lunch".
El-Erian added that Wall Street has yet to price in increased political uncertainty stemming from the rise of protest politics in the US and Europe
Famed bond investor Bill Gross has sued his former employer Pacific Investment Management Co and its parent Allianz SE for USD 200 million, claiming he was wrongfully ousted by a "cabal" of executives who wanted his share of the bonus pool.
In his monthly letter to clients, the widely followed bond fund manager at Janus Capital said the US central bank's aversion to normalizing rates is having negative effects throughout the economy, but primarily to savers and investors
In the face of jittery financial markets and a global slowdown, the Fed blinked and held its key federal funds rate unchanged.
The roaring market will run out of steam "with a whimper, not a bang," Bill Gross, an American financial manager and author, predicted. Central bank stimulus isn't having the same effect anymore, and anemic global growth and weak corporate earnings will put a lid on asset price appreciation.
He attributed the decline to falling oil prices, which in turn affects industries such as fracking. Oil's slide also "determines currency movements," setting off a chain reaction.
Gross, who oversees the Janus Global Unconstrained Bond Fund, said "investors may want to begin to take some chips off the table," given the current environment.
Gross, who oversaw more than USD 1.91 trillion in assets as of the end of last year and who is known on Wall Street as the 'Bond King', said in a phone call to Reuters last Friday: "I'm so sick of Mohamed trying to undermine me."
In his monthly letter to investors, Gross, who heads fixed-income giant Pimco and its USD two trillion in assets under management, uses unusually blunt language to convey his feelings about historically aggressive central bank easing measures.
A newly re-elected President Barack Obama will push for higher taxes - including a dividend-tax hike that will cause a substantial drop in stocks, Pimco's Bill Gross told CNBC Wednesday.
Were the US to include its current entitlement program liabilities and US government bonds, the country would have an eye-popping debt burden that dwarfs Greece and could engulf the economy in a "ring of fire", Pimco founder Bill Gross said on CNBC`s "Street Signs" on Tuesday.
Pimco has been selling some of its Treasury holdings and is putting money into what the world`s central banks plan to buy, founder Bill Gross told CNBC`s "Street Signs" on Wednesday.
Bill Gross latest message to investors - don't put your money into Europe because they are not going to get out of their debt crisis any time soon.
Pimco bond maven Bill Gross tempered his dour outlook for stocks, telling CNBC on Wednesday that equity bulls "should expect less" from a market bound to be undermined by slowing global growth that will lower returns.
Stocks will no longer generate the kinds of returns they`ve had over the past century, ending the "cult of equity" that has been Wall Street`s mantra for generations, Bill Gross, managing director at bond giant Pimco, says in his monthly market analysis.
Investors looking to preserve their purchasing power will have to avoid Treasurys and put their money in "real assets" such as stocks and real estate, Bill Gross, Pimco co-founder, told CNBC's "Closing Bell" on Monday.
Bill Gross, the world's biggest bond fund manager at Pimco, said the US is the least bad choice in a poor global investment environment, but this could change if Washington doesn`t get control of the nation`s fiscal situation.
Bill Gross, the world's biggest bond fund manager at PIMCO, said the United States is the least bad choice in a poor global investment environment, but this could change if Washington doesn't get control of the nation's fiscal situation.
Investors have little choice now but to cling to low-yielding US government debt as European leaders ponder a messy Greek exit from the euro zone, Pimco's Bill Gross told CNBC.