Jeffrey Gundlach states that interest rates have reached their lowest level in 2019

DoubleLine CEO Jeffrey Gundlach believes the interest rate low is expected in 2019.

Growing fears of a possible global economic slowdown have pushed Treasury yields to their all-time low a few weeks ago. The so-called king of bonds said returns would not come down this year.

"It's not a good idea to bet on low interest rates," Gundlach said during a webcast for investors Tuesday. When asked if he would buy the Treasury at 10 years old now, Gundlach replied "absolutely not".

The benchmark 10-year Treasury yield crossed the 1.5% mark in August, while the 30-year Treasury yield fell below 2% for the first time in its history. the trade war between the United States and China intensified.

The Federal Reserve proceeded on Tuesday with a repurchase agreement on various instruments of loan for an amount of 53 billion dollars in order to control the level of its benchmark interest rate. Gundlach said the central bank would see the "repo" move as a "warning sign" and resume the expansion of its balance sheet.

"The freeze can only be considered as a negative," said Gundlach. "They are about to make their QE."

The Federal Open Market Committee will announce its decision on interest rates on Wednesday. Gundlach said he expects the Fed to reduce its rates by a quarter of a point.

Gundlach, a respected market forecaster, oversees $ 130 billion in assets under management at DoubleLine, according to his website.