BILL GROSS: It's Time To Lever Up

Gross told Bloomberg that investors should expect to have, "the ability to borrow short and and to lend long, much like banks do."

Gross expects this trade to available to investors for the next three to five years.

By saying that investors should be able to "borrow short" and "lend long," Gross is basically saying that yields for shorter-dated Treasury bills should rise faster than yields on longer-date debt. In other words, the prices for shorter-dated Treasuries should fall faster than prices on longer-dated bonds.

So you should sell short-dated bonds and use those proceeds to buy long-dated bonds.

This chart from Wells Fargo shows the firm's expectations for bonds of varying maturities, which reflects the core idea Gross is talking about.