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 highest level since July 2014.]

Last month, according to Bloomberg, Gundlach “correctly forecasted the start of a short-term rally in fixed income” triggered by the Fed’s interest rate increase. One of the few money managers that predicted a Trump victory, he argues that the president’s policy agenda is “bond unfriendly,” the article says, because it could boost inflation. Infrastructure spending proposals, he predicts, will have more bipartisan support, but tax cuts “are going to be really, really hard to get done.”