DoubleLine Capital CEO Jeffrey Gundlach
Matt Winkelmeyer/Getty Images
DoubleLine Capital CEO Jeff Gundlach on Tuesday noted a rally in the Treasury market and said he’s been purchasing US debt.
“I have been a buyer recently,” he told his nearly 250,000 followers on Twitter.
The 10-year yield fell Tuesday after hitting its highest level in 12 years.
The Treasury market is undergoing its worst slump in decades, but billionaire “Bond King” Jeff Gundlach has been seizing the opportunity to purchase US debt.
“The U.S. Treasury Bond market is rallying tonight. Been a long time. I have been a buyer recently,” the DoubleLine Capital CEO told his nearly 250,000 followers on Twitter in an early Tuesday morning tweet. His “Bond King” nickname draws from his success in the fixed-income market.
On Tuesday, US bond yields were moving lower as prices rose. The 10-year Treasury yield fell 10 basis points to 3.813% after the yield on Monday rose above 3.9% for the first time since 2010. The two-year Treasury yield fell 7 basis points to 4.24%.
Treasuries are undergoing their worst decline since 1949, according to Bank of America. The iShares US Aggregate Bond ETF has tumbled 16% during 2022 and the global bond market has dropped into its first bear market in more than three decades.
Treasuries have been hit hard this year as interest rates soar on the back of the Federal Reserve and other global central banks battling high inflation via rate increases. The Fed last week raised interest rates by another 75 basis points to bring the fed funds rate to a range of 3% to 3.25%.
The 10-year yield has climbed 230 basis points this year after ending 2021 at 1.51%. The Treasury market has been signaling an economic recession with the short-term yields rising above long-term yields.