NEW YORK, Jan 11 (Reuters) - The U.S. economy would struggle with a rise in the 10-year Treasury note's yield above a range of 4 percent to 4.25 percent, Jeffrey Gundlach, chief executive of DoubleLine Capital, said on Tuesday.
Gundlach, widely regarded as one of the savviest U.S. bond managers, also predicted double-digit losses for U.S. stocks in 2011. DoubleLine oversees more than $7.5 billion in assets under management.
Gundlach said the benchmark 10-year Treasury note yield could rise another 100 basis points but not meaningfully given the economic growth prospects in the U.S.
'I do not think the (10-year) Treasury yield is going to 5 percent,' he said.
U.S. benchmark 10-year Treasury notes fell 13/32 in price, their yields rising to 3.34 percent from 3.29 percent late Monday. Keywords: TREASURIES SELLOFF/GUNDLACH (jennifer.ablan@thomsonreuters.com; +1-646-223-6297; Reuters Messaging: jennifer.ablan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Gundlach, widely regarded as one of the savviest U.S. bond managers, also predicted double-digit losses for U.S. stocks in 2011. DoubleLine oversees more than $7.5 billion in assets under management.
Gundlach said the benchmark 10-year Treasury note yield could rise another 100 basis points but not meaningfully given the economic growth prospects in the U.S.
'I do not think the (10-year) Treasury yield is going to 5 percent,' he said.
U.S. benchmark 10-year Treasury notes fell 13/32 in price, their yields rising to 3.34 percent from 3.29 percent late Monday. Keywords: TREASURIES SELLOFF/GUNDLACH (jennifer.ablan@thomsonreuters.com; +1-646-223-6297; Reuters Messaging: jennifer.ablan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.