By Daily Crux Editor Brian Hunt:

When it comes to investing in bonds, it pays to know what Bill Gross and his Pacific Investment Management Co (PIMCO) is doing. Gross is world's best bond investor. He's always one step ahead of his competition and the government.

PIMCO is buying debt in telecom, pharmaceutical, and health-care companies right now. That's where the bond giant sees the best combination of risk and reward. PIMCO also says it's not buying high-yield bonds yet. This article also offers PIMCO's outlook on inflation/interest rates:

"A 'severe' global recession will last throughout 2009 and keep global interest rates at low levels, Pimco said. That means the yield on 10-year U.S. Treasuries will probably range between 2 percent and 3 percent over the next year, the Newport Beach, California-based company said."

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