Bill Gross has restructured his holdings of U.S. Treasuries in anticipation of rising inflation that could follow the next round of stimulus from the Federal Reserve.

Gross runs the world's largest bond fund at Pacific Investment Management Co. in Newport Beach. He has reduced the proportion of U.S. debt in Pimco’s $272 billion Total Return Fund to 21% as of August 31.

Mortgages now make up 50% of the fund.

The Fed is scheduled to announce the latest round of economic stimulus today. Investors are generally expecting a new bond-purchase program, and have been nudging stocks up during morning hours.