MRK - Bill Gross sees 10-year Treasury yield rising to 2% over the next year

Fixed income investor Bill Gross reiterates his view on the "garbage" bond market, saying 10-year U.S. Treasury yields are likely to rise to 2% over the next year, according to his October Investment Outlook. The 10-year UST yield appears to have formed resistance at around 1.60% this week, now standing at 1.55%. "Markets have likely seen their secular, long term lows in interest rates, but expectations for a 30-year bear market to match the previous 30-year bull market are way overdone." He offers some alternatives away from bonds including artificial intelligence innovator Nuance Communications (NASDAQ:NUAN), which is likely to return 8% annualized before year end post-Microsoft (NASDAQ:MSFT) acquisition, and Acceleron Pharma (NASDAQ:XLRN), a Merck (NYSE:MRK) acquisition that's likely to do the same. Gross also continues to short meme stocks including GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) "with caution that volcanoes erupt every once in a while." In addition, his portfolio

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Bill Gross sees 10-year Treasury yield rising to 2% over the next year