GUNDLACH: Here's how we'll know the bond bull market is dead

DoubleLine Capital founder Jeff Gundlach said that if the 10-year Treasury yield hits 3%, itwould mark the endof the bull market in bonds.Gundlach hostedhis annual "Just Markets" webcast on Tuesday, January 10 to discuss his 2017 outlook.In what appeared to be a jab at Bill Gross, a portfolio manager at Janus, Gundlach referenced "second-tier bond managers" focusing on a 2.6% yield on the 10-year note as the market's death spell."If 2.60% is broken on the upsideif yields move higher than 2.60%a secular bear bond market has begun," Gross said in his monthlyinvestment outlook earlier on Tuesday. Bond yields rise when their prices fall.In Gundlach's December webcast, he said arise in the benchmark 10-year yield to 3% and above would have "a real impact on market liquidity in corporate bonds and junk bonds."Gundlach also warned of a sell-off in the stock market around inauguration day on January 20, as investors grasp that President-elect Donald Trump doesn't have a magic wand to implement the growth plans they are optimistic about.HisDoubleLine Total Return Bond Fund posted a net outflow of $3.5 billion in December, its biggest one-month withdrawal ever, data from research firm Morningstar showed earlier in January. The webcast did not discuss any fundsHere are highlights from Gundlach's presentation:SEE ALSO:Wall Street's smart money is dumping the biggest trade in stocks since Trump's electionDON'T MISS:Want to get ahead on Wall Street' Here's everything you need to know to land your dream jobHere's a recap of 2016 ...It had the worst startfor the stock market ever, and ended nearall-time highs.When the Dow "made it to 19,999 [last week], I suppose you can call it 20,000 for all intents and purposes," Gundlach said.... across markets."I certainly expect that 2017 will be a third year of rising bond yields."See the rest of the story at Business Insider
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