Jim Rogers Joins Bill Gross Warning on Treasuries

By Wes Goodman

Investor Jim Rogers joined Bill Gross, who runs the world’s biggest bond fund, in warning that a rout that sent Treasuries to their biggest loss last month in almost a year probably isn’t over.

The list of bond bears is growing after Goldman Sachs Group Inc. and Wells Capital Management Inc. also voiced concern. While unemployment rose January, Labor Department revisions showed job gains at the end of last year were higher than previously reported, increasing speculation the Federal Reserve will curtail its debt purchases this year. The Standard & Poor’s 500 Index rallied this month to approach a record.

[...]“I’m short long-term government bonds,” betting the securities will fall, Rogers, the author of the book “Street Smarts,” said yesterday on Bloomberg Radio. “I plan to short more. That bull market, that’s a bubble.”

U.S. inflation may pick up in 2014 to 2016, Pimco’s Gross said earlier this month on Bloomberg Radio. Faster inflation “will create an upper drift in long-term yields,” Gross said.

Rogers said he has been short bonds two or three times in the last few years. Gross reiterated earlier warnings about costs in the economy.

The difference between yields on 10-year notes and same- maturity Treasury Inflation Protected Securities, a gauge of trader expectations for consumer prices over the life of the debt, was 2.55 percent. The figure compares to the average over the past decade of 2.19 percent and the current inflation rate of 1.7 percent as measured by consumer prices.

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