Bill Gross: 'Don't Own Bonds and Be Cautious With Stocks'

Billionaire bond investor Bill Gross is steering clear of both major asset classes as US Treasury yields spike. "Don't own bonds and be cautious with stocks," Gross said, in comments highlighted by the Financial Times amid what the paper called a "vicious loop" of selling in US government debt. The 10-year Treasury yield spiked to 5.30% and the 30-year to 5.63% at the end of Q3, the highest levels since June 2002, according to Rabobank's global economics team. The Wall Street Journal, meanwhile, countered that "money managers are asking clients to give the bond market another chance." Gross's warning lands as the national debt tops $40 trillion and the 10-year yield touched 5.34% on October 1, its highest since 2002.