It turns out that "Bond King" Bill Gross's interest in Treasury bonds is very selective. Gross, founder and co-chief investment officer at Pimco, favours Treasury bonds maturing between five years and seven years while shunning the benchmark 10-year notes and 30-year bonds.

The preference suggests Gross desires exposure to a market that's still proving a hideout from the eurozone's unresolved debt crisis and a slowing global economy, but that he continues to worry about long-term inflation risks.