DoubleLine CEO Jeffrey Gundlach said this morning U.S. equities and 10-year Treasury bonds had reached their lows and that he expected stocks to rally. Gundlach also said he expected the U.S. dollar to continue to strengthen despite the strong rally it had already experienced this year.
 
Interviewed on CNBC, Gundlach said that the 10-year Treasury, which yielded 2.22 percent at one point in the last day, should have hit bottom. Any significant decline in yield beyond 2.20 percent would represent a major departure that could prompt the Fed to reconsider its strategy, he said.
 
At several points in recent months, Gundlach has indicated he expects 10-year Treasury to remain range-bound between 2.20 percent and 2.80 percent.
 
Gundlach also remarked that he thought the Alibaba IPO probably signaled the equity market’s high for the year.