DoubleLine's Gundlach: US Treasury at 30 Announces Higher Bond Returns

NEW YORK (Reuters) – Jeffrey Gundlach, managing director of Doubleline Capital, said Thursday that the yield on 30-year US Treasury bonds had exceeded a multi-year base, which should lead to a significant rise in financial market returns.

"As I said, two consecutive closings above 3.25% on the 30-year benchmark treasure mean that my July 2016 statement that we were observing the lowest level – I said in italics, underlined and in bold – is now looking at the charts, corroborated thoroughly, "Gundlach told Reuters.

Thursday, the 30-year Treasury bill closed at 3.35%, against 3.34% Wednesday.

"The last man standing was the 30-year-old, and he definitely exceeded a multi-year base that, over time, should lead us to significantly higher yields," said Gundlach. "In addition, the curve is slightly accentuated in this escape, which is another sign that the situation has changed."

Gundlach, who manages $ 123 billion, said the US stock market "is starting to realize this and will continue to do so, especially if the pace at which rates rise is alarming."

Mr. Gundlach pointed out that shares outside the United States had already fallen sharply since January 26, 2018, high-synchronized, which "will remain in history as the top of the global stock market for this round".