The yield on 10-year Treasuries will head “much lower” if it breaches the 3.37% level, according to DoubleLine Capital LP Chief Executive Officer Jeffrey Gundlach.
(Bloomberg) — The yield on 10-year Treasuries will head “much lower” if it breaches the 3.37% level, according to DoubleLine Capital LP Chief Executive Officer Jeffrey Gundlach.
Yields pared gains from earlier today as market sentiment turned cautious following efforts over the weekend to safeguard the global banking system. On Friday they closed at the lowest in more than 6 weeks as the recent collapse of three regional US banks in quick succession weighed on markets.
“May you live in interesting times,” Gundlach tweeted.
Gundlach has been vocal in recent weeks about the outlook for markets in the wake of the concerns surrounding the banking sector. He warned last week that the Treasuries yield curve suggested an “imminent recession,” while he today blamed Credit Suisse bondholders for being wiped out.
–With assistance from Garfield Reynolds.
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