Gundlach, Gross Express Different Views On How Low Yields Can Go
- Trend lines show a lot of room for yields to fall: Gundlach
- Gross sees 10-year yield appropriate at current level near 4%
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Some of the biggest names in the bond world are at odds about just how far Treasuries can rally now the Federal Reserve has signaled a pivot toward interest-rate cuts.
Jeffrey Gundlach at DoubleLine Capital says US 10-year yields will fall toward the low 3% range as the central bank is likely to slash its cash-rate target by a full two percentage points next year. Former Pimco bond king Bill Gross dismissed such euphoria, saying the yield is already about where it should be at just on 4%.