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To: mishedlo who wrote (198333)	10/17/2002 5:55:57 PM
From: mishedlo	Respond to of 436258

BOND RALLY IS OVER, SAYS DEBT GURU GROSS By BETH PISKORA -------------------------------------------------------------------------------- BILL GROSS: Bond rally a boon. - Bloomberg October 17, 2002 -- The bond rally is over. Even as Wall Street pros continue to squabble over the direction of the stock market, there is general agreement that the rally in U.S. Treasury bonds has run its course. Bill Gross, the man behind the world's largest mutual fund, told a press conference yesterday he believes 10-year Treasuries are "appropriately valued." That means investors who've been frightened away from a falling stock market may have lost a safe place to park their cash. Gross, who heads the Pimco Total Return Fund, is turning his attention to Canadian and European government bonds and sees potential for corporate bonds to become more attractive in the next three to six months. The rally in U.S. Treasuries has been a boon to Gross and his fund, which attracted $10.2 billion in new investments in the first eight months of 2002, making it the biggest fund in the world, with $64.5 billion in assets. The fund has a gain of about 4.9 percent so far this year, compared with a loss for most equity investments. Gross, speaking in Munich, did not explicitly say that he plans to stop buying U.S. Treasuries, but many bond market watchers interpreted his words that way. And he's not the only one to cite the end of the bond market rally. "We believe 2002 will mark the end of the 20-year decline in Treasury yields," said Clark Winter, chief global investment strategist for Citigroup's private bank.