At European stocks markets close, the yield on the government's benchmark 10-year bond was down 0. 16 percentage point at 5.86%, according to Tradeweb.

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The 30-year bond has already lost 11.7%, while the popular 20-year bond etf TLT has lost 16.2% of its value since its peak in early September.

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Even with the decrease, bond and bond fund allocations were above their historical average of 16% for the 33rd consecutive month.

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That is why investors have shunned Greek debt to the extent that the 10 year Greek Government bond closed on May 20th 2011 at a yield of 16.73%, which is a spread of 13.66% or 1366 basis points over German 10 year paper.

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There was a fairly well-subscribed Italian debt auction Monday, but bond yields in Portugal rose to Euro era highs of around 16% Monday.

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One way I trim the fees charged by fund companies on my retirement accounts is to invest in a handful of stock and bond index funds, which carry expense ratios ranging from .05 percent to .16 percent.

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By February, it became obvious that the 16-nation euro zone would have to do something to address the Greek bond meltdown.

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Mr. Gross's fund returned 4.16% for the year, its worst performance since 2006 and far behind the benchmark Barclays Capital Aggregate Bond Index's 7.84% gain, according to Morningstar.

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