Jeff Gundlach: don't bet on lower interest rates

The ten-year US Treasury yield has already hit its low for the year, says "bond king" Jeff Gundlach.

CEO of DoubleLine Capital Jeff Gundlach © Matt Winkelmeyer/Getty Images

(Image credit: CEO of DoubleLine Capital Jeff Gundlach © Matt Winkelmeyer/Getty Images)

A recent spike in the interest rates on overnight loans between financial institutions (known as the "repo" market) has forced the Federal Reserve to inject billions into US money markets this month. It doesn't spell "imminent disaster", says Jeff Gundlach (sometimes known as "the bond king"), the founder and chief investment officer of DoubleLine Capital. However, it does suggest that the Fed might eventually start expanding its balance sheet again "QE lite" as Gundlach puts it (QE is short for quantitative easing, whereby the Fed prints money to buy bonds orother assets).

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