Treasuries sold off the U.S. government was adding insult to injury.

<P> U.S. Treasury yields fall, leading to many pension fund managers to sell treasury bills, switching to other investment products. .This is a huge deficit facing the pressure of the Bush administration, the equivalent of adding insult to injury. .</ P> <P> bond yields fell </ P> <P> It http://finance. Hearing, 30-year yield has fallen to 4.22% from 19, close to record lows. .This forced the pension funds is more favored stocks, corporate bonds and commodities such investment products, in order to compensate for poor financial condition and used to pay pensions. .Philadelphia pension management Mackay, chief investment adviser Chris Alexander Downer said: "The reality is that we do not have much to do, besides buying high-risk securities to fill the pension gap in the short term." Even .U.S. federal government's own pension fund pension benefits U.S. security company on February 19 this year, also said it planned to invest the 150 billion shift from debt stock. .1100 U.S. fixed income investments of the Fund increased from 27% in 2003 to 23% in 2006. .Financial market research firm Greenwich Associates consultant Clifford that a greater proportion of the decline in 2007. .</ P> <P> holdings of foreign stocks </ P> <P> the Bush administration forecast a fiscal year budget deficit will be 410 billion U.S. dollars, close to a record 413 billion U.S. dollars in 2004. .The world's largest bond fund manager Pacific Investment Management Company, Bill Gross believes that this figure could eventually reach 8,000 billion U.S. dollars. .UBS Securities believes that the budget shortfall will force the U.S. Treasury 163 billion U.S. dollars on the basis of the borrower to increase the scale of 145%. .30-year bond is the favorite of pension funds, because they enable managers to get the best match of the assets and liabilities. .It is predicted that the pension fund holds about 440 billion 20 years or longer-term bonds. ."In the long run, I do not know whether these bonds will have much value." Oversees 8.5 billion pension fund of the Los Angeles water department pension fund's chief investment officer, said Jeremy Wolfson, the fund will adjust the bond holders .a rate of 35% from the previous reduced to 25%, and increase non-US assets are held, such as international equity holders of the next 4 years the proportion increased from 15% to 24%. .In addition, many pension funds to employ foreign managers, they are used to compare alternative investments with funds under management, which means that the amount of investment in treasury bills will come down. .</ P> <P> bond yield spread that out of favor </ P> <P> Los Angeles, the largest U.S. pension fund pension plans on February 19 this year to agree on the board of directors decided to 0.5% to 3% of its assets .for investing in commodities. .According to the Pew Research Center report in December last year, the U.S. government should send the pension and insurance funds in the next 30 years is estimated to reach 2.73 trillion U.S. dollars, and they are difficult to pay almost $ 731,000,000,000. .Watson Wyatt head of asset allocation Off Make Lu believes that such studies may overstate the pension gap, so that only allow them to buy shares out of treasury bills. .Declines in bond yields more attractive to other fixed income investments, Blackstone Group, the management company in New York account manager, said Barbara Novak, the company manages 513 billion U.S. dollars of fixed income assets. .Merrill Lynch index shows that investment grade corporate bond yields higher than Treasury bills average 2.47 percentage points a year ago only 0.89 percentage points higher. ."The yield spread has expanded to such a large extent, the transfer is now time to invest in other things," Novak said. .</ P>.