Gundlach: Treasury yields breakout a 'clear and present danger'

Reuters

Published Feb 23, 2018 01:32PM ET

Gundlach: Treasury yields breakout a 'clear and present danger'

NEW YORK (Reuters) - Jeffrey Gundlach, chief executive of Doubleline Capital, said on Friday that while bond yields seem to "make sense" at current levels, he has a "low conviction feeling" that they could break out to the upside, representing a "clear and present danger."

Gundlach, on CNBC television, said commodities are the best place to be during the late stage of an economic cycle, which the United States is in at the moment.

Gundlach, known as Wall Street's Bond King, was asked about a series of tweets he wrote late Thursday.

Gundlach, who took to Twitter with a retort to an interview Treasury Steven Mnuchin gave to Bloomberg on Thursday that attempted to allay investor worries about inflationary pressures, said: "Mnuchin: policies will raise wages w/out inflation. Yeah, sure. And we are going to expand the Buffalo Art Museum without making it bigger."

In the interview, Mnuchin said the economic policies of President Donald Trump and his administration could successfully lift the wages of American workers without triggering overall higher inflation.