From Reuters, quoting Bill Gross, who previously did not believe in another round of QE:
PIMCO'S GROSS SAYS WILL CHANGE HIS MIND ON SHORTING US TREASURIES IF THERE IS POTENTIAL FOR ANOTHER RECESSION
And of course, another recession will mean more QE, which means more debt monetization, which means that naturally, the first and last buyer for Treasury bonds, the Fed, will be there for ever and ever, which means more fiat printing, which means $5+ trillion in Fed "assets", which means more inflation expectations, etc, etc.
More from Reuters:
PIMCO's Bill Gross, who runs the world's largest bond fund, said on Friday the only way he would reverse his "short" position on U.S. government-related bonds is if the United States heads into another recession.
Since the April 11 news that Gross turned more bearish on U.S. Treasury debt, reflecting his growing worries over the country's fiscal deficit and debt burden, Treasury prices have been soaring.
On Friday Treasury prices fell though after a better than expected U.S. monthly employment report .
Asked Friday Gross told Reuters: "Treasury yields are currently yielding substantially less than historical averages when compared with inflation. Perhaps the only justification for a further rally would be weak economic growth or a future recession that substantially lowered inflation and inflationary expectations."