Albert Edwards, star analyst at Societe Generale, has published a bullish research note on US Treasurys despite the insistance of debt guru Bill Gross, founder of bond giant Pimco, that now is a prime time to dump these assets.

Three months ago, the $236bn Total Return Fund at Pimco, the world's biggest investor in US government debt, sold out of Treasurys completely (with the exception of bonds that mature in under a year) after Gross said the US is likely to default on its debt via inflation. By April, the fund also had a 3% short position on the debt by betting on rising yields.