Earlier this week, bond god Jeff Gundlach made a big call on the 10-year.
From Barron’s, here’s what Gundlach said on CNBC:
It seems that everything gets indigestion when bond yields get above 2.20. If bond yields fall, I think its initially positive for stocks…. If you from 2 to 2.50, bond investors can lose 4%, but you lose less if you shorten your duration…. I really do not think you’re going to see 2.50 on the 10-year any time in 2013…. I don’t think we’re going to see bond yields return to 1.38% again.
Welp, that did not turn out correct.
BREAKING: Treasury 10-year yield rises to 2.5% for first time since 2011
— Bloomberg TV (@BloombergTV) June 21, 2013
This is a rare miss from an investor whose track record continues to be superb.
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