Bill Gross says he’s buying futures tied to the Secured Overnight Financing Rate and sees a recession in the fourth quarter.
Posting on X on Monday, Gross said he expects the gap between two- and 10-year yields as well as the difference between two- and five-year yields to go positive before year-end.
Regional bank turbulence and the rise in auto-loan delinquencies suggest a significant slowdown in the U.S. economy, he noted.