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Need to Know: Bill Gross: This is why bonds are selling off

Bonds, cheap bonds.

Investors are still grappling with some whiplash caused by a bond sell off Wednesday, which saw the biggest one-day climb in two years for the 30-year U.S. Treasury yield.

Several reasons are cited for this spike, but our call of the day comes from so-called ‘bond king’ Bill Gross, who says we should blame absent foreign buyers for driving yields higher.

“Euroland, Japanese previous buyers of 10yr Treasurys have been priced out of market due to changes in hedge costs,” the manager of the Janus Henderson Global Unconstrained Bond Fund, tweeted Wednesday.

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