Once again, Bill Gross is flailing his arms, yelling "Don't panic!" at bond fund investors, reported Bloomberg's Grant Clark and Rocky Swift. In Gross' July commentary Gross said the Fed took its new mantra of transparency to far by specifying when a tapering of QE would likely begin.

“The U.S. economy is not sinking, nor are the majority of global economies,” Gross wrote. He continued to add to the maritime metaphors, by adding, "don't jump ship now." “We may have reached an inflection point of low Treasury, mortgage and corporate yields in late April, but this is overdone,” he wrote.

Gross is trying to calm investors at a time when U.S. listed bond mutual funds and ETFs saw record monthly redemptions of $61.7 billion through June 24, reported Bloomberg's Sree Vidya Bhaktavatsalam.

Pimco's Total Return Fond led declines among the most popular mutual funds earlier in June. the fund lost 1.6 percent from the fund from June 18 to June 20.

In addition to bond market panic, customers of American equity mutual funds withdrew money from the fifth straight week, the longest period of time investors have withdrawn since January. Federal Reserve news has increased volatility in the market with the average daily price move for the S&P rising to 0.73 percent this quarter from 0.48 in the first quarter, Bloomberg's Katie Brennan wrote.

To read the full stories click here, here and here.

MFWire ran an earlier story on the bond markets' fears which can be accessed here. 

Edited by: Casey Quinlan


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