Jan. 12 (Bloomberg) -- Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said the Federal Reserve may embark on as much as $500 billion of quantitative easing in the second half.
The Fed’s purchases of U.S. debt mean that yields on 10- year bonds will probably remain “relatively stable” at about 1.9 percent throughout 2012, Gross said in a televised interview with Bloomberg HT news channel broadcast today.
U.S. economic growth may slow to 1 percent in the second half of the year, Gross said.
Pimco has no plans to buy Italian debt at 7 percent because “the economy itself is tipping and the recession that Italy and Spain and others are experiencing will perhaps continue for another several years,” he said.
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