Short bonds has been a soul-destroying trade but the new bond king says it’s time to take another swing.
Doubleline chief Jeffrey Gundlach says 2.20% should be the low in interested rates for the year, on CNBC. The 10-year hit 2.17% earlier today but has rebounded to 2.22%.
US 10 year yields bonds
He also said the stock market will bounce (although the top of the year is in). Gundlach is basically doubling down because he said earlier this year that the range on 10-years would be 2.20% to 2.80%.
On FX, he said the dollar trade is crowded but will continue to work.
The best way to short bonds is in the futures market but baring that, a few ETFs can do it, TBF, TBX and PST are some of the best known ones although levered ETFs are a poor way to make long-term bets.
