UBS: Bund Yields Can Double Before Hitting “Fair Value”

UBS believes the bund yields sell-off will continue. DoubleLine Capital Chief Executive Officer Jeffrey Gundlach, who oversees around $109 billion in client funds, is considered to be Wall Street’s leading authority on bonds. So, when Gundlach started to claim at the beginning of the year that this summer, bond yields would push uncomfortably higher as the Federal Reserve increases rates further and begins its balance sheet normalization policy, the rest of Wall Street listened. So far, this forecast turned out to be correct. The US 10 year Treasury yield traded as high as 2.39% on Thursday,  and according to Gundlach…