Gundlach predicts 10-year yield to hit 3.5%, 30-year at 4%
For investors looking for an inflection point in the bond market, this is it.
Jeff Gundlach, chief executive of Doubleline Capital, on Thursday projected that U.S. Treasury yields are likely to rise further and investors should adjust accordingly.
The so-called bond king said in an interview with CNN that the 10-year yieldTMUBMUSD10Y, -0.73% could rise to 3.5% and the 30-yearTMUBMUSD30Y, -0.80% could climb to 4%, which are likely to hurt companies sensitive to higher rates, such as auto makers.
In a tweet last month, Gundlach had forecast that the 30-year Treasury yield closing above 3.25% two days in a row will signify a “game changer,” a view he reiterated Thursday.
Two consecutive closes above 3.25% = a breakout from multiyear head&shoulders base. Last man standing is down. 7/16 was indeed the rate low.
— Jeffrey Gundlach (@TruthGundlach) October 4, 2018
Related Posts:We truly are under attack. We need user support now more than ever! For as little as $10, you can support the IWB directly – and it only takes a minute. Thank you. 501 views