Pimco Expects U.S. Treasury Yields to Peak at 3.5%

As the Fed continues to raise rates, Pimco’s Robert Mead (co-head of Asia-Pacific) says U.S. 10-year Treasury yields will stay in the 3 to 3.5% range for the rest of the year. This according to a recent Bloomberg article. At the Bloomberg Invest summit in Sydney, Australia, Mead said the higher yields represent an opportunity for investors over the long term. The negative correlation between bonds and stocks, he said, offers diversification and volatility-adjusted returns.… Read More

Gundlach Says Don’t Focus On the 10-Year Treasury

On a recent investor call, DoubleLine chief investment officer Jeffrey Gundlach argued that investors are wrongly focused on the 10-year Treasury yield breaching 3%, that instead they should be paying attention to whether the  30-year “long bond” goes above 3.22%. This according to an article in Advisor Perspectives. If the 30-year bond rises above that level, he said, “then the 10-year yield will break out upwards,” potentially quickly breaching the 4% mark, which could be… Read More

The 30-Year Downtrend in Interest Rates Could Be Over

A recent article in MarketWatch outlines comments by industry experts regarding the 10-year Treasury’s recent inching up above the 30-year downtrend line: Mark Arbeter, CMT, of Arbeter Investments LLC says that, from a “very long-term perspective, yields appear to be tracing out a massive bottom,” adding that while the yield rise could lead to more volatility and is most likely a warning of a bear market down the road, “I do not think that we… Read More

Gundlach Predicts Continued Bond Rally

Doubleline’s chief executive officer doesn’t envision the yield on the 10-year to surpass 3% this year, says an article in yesterday’s Bloomberg. Jeffrey Gundlach believes a bond rally is likely to continue, with yields dropping to “below 2 ¼ at a minimum on the 10-year, maybe  a little bit lower than 2 and then it moves back up.” [The article notes that these bonds traded at 2.36% yesterday after reaching 2.6% on March 13th, their… Read More

Buffett Puts Market’s Valuation in Context with Earnings Yield vs. 10 Year

In a CNBC interview that aired last month, Warren Buffett shared his thoughts on current market valuations and how he would respond to investors that feel they missed their opportunity to buy into the market. “Well, I would say they don’t know, and I don’t know. And if there’s a game it’s very good to be in for the rest of your life, the idea to stay out of it because you think you know… Read More