Jeffrey Gundlach, CEO of DoubleLine Capital, is adopting a highly selective strategy in the bond market amid Federal Reserve uncertainty. The Fed held its benchmark rate between 3.5% and 3.75%, but Gundlach believes reaching the 2% inflation target could take several years. He favors high-quality bonds, specifically BBB-rated and above, while avoiding the CCC segment of high-yield markets and bank loans. The 30-year Treasury yield surged above 5.2%, a level not seen since 2007, and Gundlach forecasts a possible move toward the mid-5s by September.
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