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PIMCO's Gross: Fed programs end may pressure debt

TORONTO
Mon Oct 26, 2009 6:11pm EDT

TORONTO (Reuters) - Bill Gross, the influential manager who runs top bond fund PIMCO, warned on Monday that the prospect of an end to the Federal Reserve's debt buyback programs could add selling pressure to several credit markets, including U.S. Treasuries.

Asked about the risk that a recovering U.S. economy hurts Treasury investors, he said "there's not a heightened sense of concern, but there is some concern."

"It's obvious that the programs in the United States, the Federal Reserve buyback programs ... those purchases and that purchasing power will cease within the next three to four months," Gross told a Canadian business television channel.

"So, to the extent that that's gone, then perhaps the upward influence in terms of those longer-term Treasuries will be felt more strongly in the next several quarters."

(Reporting by Jeffrey Hodgson; editing by Rob Wilson)



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