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Gundlach Sees 6% Yield in 3 Years. Anyone Else?

Bloomberg
Gundlach Sees 6% Yield in 3 Years. Anyone Else?

Jeffrey Gundlach has had a good run this year handicapping the $14.9 trillion Treasury market. DoubleLine Capital’s chief investment officer said in January that the benchmark 10-year U.S. yield would keep rising if it broke past the 2017 high of 2.63 percent. It did. In April, just as the yield reached 3 percent for the first time since 2014, Gundlach said he had “low conviction” that it would sustain that level. Sure enough, it has closed below that threshold for 15 consecutive sessions. And he’s repeatedly said the 30-year U.S. yield would need to breach 3.22 percent — and not just once, but twice —  for long bonds to enter a bear market. Almost to the decimal point, that call has panned out,