FYI: Ballooning U.S. debt issuance is capping gains in the Treasuries market even amid stock “carnage” that would typically boost bond prices, according to Jeffrey Gundlach, chief investment officer of DoubleLine Capital.
A global equity sell-off that’s seen major U.S. stock indexes erase 2018 gains has pushed benchmark 10-year Treasury yields to 2.88 percent, close to the lowest level since August. While that rally should be stronger given the magnitude of the equity-market turmoil, crisis-era debt supply levels are making it difficult for yields to fall much lower, according to Gundlach.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-12-11/gundlach-says-market-signaling-rate-hikes-unlikely-in-2019-2020?srnd=premium
