There's at least one major investor who thinks the worst global bond rout in decades is creating a buying opportunity.
Jeffrey Gundlach, chief investment officer at DoubleLine Capital, said in a tweet that he's been snapping up Treasuries.
While U.S. 10-year yields have climbed about 235 basis points in 2022, exceeding any annual increase on record in data going back to 1962, there was some relief on Tuesday with the benchmark yield falling 10 basis points to 3.82%.
"The U.S. Treasury Bond market is rallying," said Gundlach, whose firm manages more than $107 billion. "Been a long time. I have been a buyer recently."
It's a potentially bold call. The global bond rout accelerated this week as the U.K.'s plan for large tax cuts raised fears of a wave of fiscal profligacy, giving investors another reason to steer clear of government debt.
Meanwhile, the Federal Reserve is leading developed-nation central banks in delivering the steepest rate hiking cycle in a generation — and pledging to keep rates higher as long as it takes to quash inflation.
That's proved a toxic combination for Treasuries. Investors have been burned at least twice this year, after rebounds for U.S. bonds in May and June evaporated once the Fed made it clear the threat of a recession won't stop it from tightening policy.
