Gundlach Sees Change in Market Psychology on Fed Decision

DoubleLine Capital LP’s Jeffrey Gundlach said the psychology in bond markets may have changed after the U.S. Federal Reserve unexpectedly maintained the pace of monthly bond purchases, sending yields lower.

The yield on the 10-year note fell as low as 2.67 percent following the Fed’s announcement. A level below 2.7 percent represents a “convincing change” in psychology after yields rose above 3 percent earlier this month, Gundlach said today during a webcast for investors.

“There are encouraging signs developing that it’s safer to get back in the waters of fixed income,” Gundlach said.

To contact the reporter on this story: Alexis Leondis in New York at aleondis@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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