GUNDLACH: The Global Bond Market Liquidation Has Run Its Course

Jeffrey GundlachJeffrey Gundlach

Jeff Gundlach, the bond god of DoubleLine Funds, has a long track record of successful investment calls.

However, he has stumbled a bit in recent weeks.

During a webcast earlier this month, Gundlach reiterated his bullishness on U.S. Treasury bonds, predicting that the 10-year Treasury yield would fall to 1.7% by the end of the year.

But since that call, bonds around the world have tumbled and rates have surged (see chart below).

CNBC’s Scott Wapner spoke with Gundlach earlier today.  Here’s Gundlach:

The liquidation cycle appears to have run its course with emerging market bonds, U.S. junk bonds, munis and MBS — all of which substantially underperformed Treasuries during the rate rise — now recovering sharply…

…July will not be a repeat of May/June in the interest rate market.

So, he’s sticking to his call.

Gundlach will be hosting a webcast this afternoon.  Surely, he’ll provide us with much more colour.

Here’s a look at the ugly performance of the 10-year Treasury yield since the beginning of the year via

10 year yield

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.