The "new bond king" Gundlach said that the long-term bond market does not want the Federal Reserve to adopt aggressive easing policy; the Federal Reserve is not as behind the curve as before; the Federal Reserve is more likely to cut interest rates by 50 basis points in November after the US election; and the current data support Powell's remarks that the economy is not showing significant pressure.
Mr. Gundlach, the "new bond king", said he expected the Fed to cut interest rates by 50 basis points tomorrow, for a total of 125 basis points this year; he believes the US is now in recession.
1. US 30-year mortgage rates fell below 7 per cent for the first time in more than a month. 2. Ganglac, the debt king: The US economy is about to decline, and corporate bond defaults are expected to surge. 3. Bets on the Bank of Japan to raise interest rates have triggered the biggest shock to the Japanese bond market in years. 4. Morgan Stanley: Shorting Japanese bonds has become a major trade for global fund managers. 5. Deutsche Bank returns to the yen bond market after nine years. 6. IMF: Fr...