The bond fund prince has walked back from his original interest rate diagnosis, saying that rates on 10-year Treasuries are going to reach past 3 percent this year, InvestmentNews' Jason Kephart reports.

Only two months ago, DoubleLine [profile] founder Jeffrey Gundlach said interest rates would fall as low as 1.7 percent of the end of the year, Kephart writes.

In the CNBC appearance, Gundlach seems a little fed up with investor's emotional reaction to the bond markets. Kephart quotes Gundlach as saying, "We don't see signals that the interest rate increase is over. Fear and loathing is the sentiment right now. The market's gone from saying, "I don't care about volatility, I just want income,' to 'I don't care about income, I don't want volatility.'"

Gundlach is watching closed-end bond funds to establish when the fear and loathing will end, Kephart writes.

Click here to read more.  

Edited by: Casey Quinlan


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