Gross: Treasurys Enter Bubble Territory

Thursday, December 11, 2008 3:16 PM

By: Dan Weil

First there was a tech stock bubble, then a real estate bubble.

Now a Treasurys bubble?

That’s what superstar bond fund manager Bill Gross said after a $30 billion auction of one-month Treasury bills produced a yield of zero this week.

Some bills traded in the secondary market with a negative yield. People were literally willing to lose money to buy them.

“Treasuries have some bubble characteristics, certainly the Treasury bill does,â€