"It's like first-grade math," Gross told CNBC's "Power Lunch" on Wednesday. "Here's a non-wonkish statement: When money yields nothing, then it will return nothing. So, when bonds have a zero percent interest rate, or negative interest rate, then there's nothing to gain from owning them."
U.S. Treasury yields are higher than many bonds abroad, with 10-year notes yielding about 1.8 percent Wednesday. That creates the "illusion" of returns, said Gross, who runs the Janus Global Unconstrained Bond Fund, even though Treasurys' inflation rates are closely tied to the yen and German government bonds.
"It's pretty easy, maybe second-grade math, to understand that perhaps all developed bond markets are kind of in the same pot," Gross said. "Yes, you can get 1.8 percent, but you do so with a lot of risk."
Gross' comments came after the release of his April investment outlook, where he warned against investing in negative-yielding securities.
In his April investment outlook, Gross wrote that markets and the capitalistic business models based upon them and priced for them "will begin to go south" if global economies do not produce growth, according to Reuters, which first reported the story.
Given massive monetary stimulus, Gross said nominal gross domestic product growth rates for the U.S. should be between 4 and 5 percent by 2017 while that for the euro zone should be between 2 and 3 percent, respectively, Reuters reported.
On Monday, the Federal Reserve Bank of Atlanta's GDPNow model predicted U.S. growth at a 0.6 percent pace in the first quarter, marked down from an earlier estimate of 1.4 percent.
In Japan, nominal GDP should be between 1 and 2 percent while China should be between 5 and 6 percent by 2017, Gross added.
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