"As I have been saying, two consecutive closes above 3.25
percent on the benchmark 30-year Treasury means that my
statement in July 2016 that we were seeing the low - I said
italicized, underlined and in boldface - is now, looking at the
charts, thoroughly corroborated," Gundlach told Reuters.
On Thursday, the 30-year Treasury note closed at 3.35 percent,
compared with 3.34 percent on Wednesday.
"The last man standing was the 30-year, and it has definitively
broken above a multiyear base that should over time carry us to
significantly higher yields," Gundlach said. "Also, the curve is
steepening a little in this breakout, which is another sign that
the situation has changed."
Gundlach, who manages $123 billion, said the stock market in the
United States "has started to take notice, and will continue to,
particularly if the speed at which rates rise becomes alarming."
Gundlach noted that stocks outside the United States are already
down significantly from the Jan. 26, 2018, synchronized high,
"which will go down in history as the peak for the global stock
market for this cycle."
(Reporting By Jennifer Ablan; editing by Jonathan Oatis)
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