Current yield: Gross shakes the bond market; GE calms it, a bit

Barron's, March, 2002 by Ablan, Jennifer

Last week Bill Gross lambasted General Electric for carrying too much short-term debt on its books and for not being forthright enough in its financial disclosures. In a sign of the jitters that Gross sent through the market, the yield on two-year Treasury bonds jumped from 3.54% to 3.67% that day, while the yield on 10-year Treasuries jumped by a similar amount, from 5.28% to 5.40%.

A day before Gross's commentary, Moody's pointed out that GE Capital's short-term debt, which includes commercial paper and debt maturing within one year, totaled a staggering $127 billion at this date. Copyright Dow Jones & Company Inc Mar 25, 2002