The «bond king» advised against buying 30-year bonds. What he chose instead

Investors should refrain from buying 30-year treasuries and wait for their yields to rise, says «bond king» Jeffrey Gundlach. Instead of bonds, he advises to pay attention to gold and stocks in India.

«It's now becoming clear that long-term Treasuries no longer work as a safe haven asset. They don't respond to lower interest rates, they don't respond to inflation, which is now 2.5%,» Jeffrey Gundlach, head of one of the world's leading bond funds, DoubleLine, said in interview Bloomberg.

DoubleLine now remains «extremely uninvolved» in long-term 30-year U.S. Treasury bonds: Gandlach believes their yields will rise when the U.S. economy starts to weaken or the Fed resumes cutting rates, reports MarketWatch. «The «bond king» expects bond yields to reach 6% - which could prompt the U.S. Federal Reserve to begin quantitative easing.

U.S. 30-year bond yields hit a nearly 20-year high of 5.15% in May and were trading at about 4.9% on Thursday, June 12, wrote Bloomberg. Bond yields have risen since the start of 2025 even as short-term Treasury rates have fallen. Gundlach's comments came a day before an auction of 30-year Treasuries, noted the agency.

According to the «bond king», investors should consider increasing non-dollar assets, and an attractive investment now is gold.

«I think of gold as a real asset class. It's no longer for crazy survivalists and wild speculators,» he said, noting that central banks are now also actively buying the precious metal.

«We've had a tremendous paradigm shift: money is not flowing into the United States, and gold is suddenly a means of flight into high-quality assets,» Gandlacha noted.

In March, the «bond king» predicted gold would rise another third from its record $3,000 per troy ounce. And in May, he stated to CNBC that the precious metal could rise as high as $4,000 an ounce. Gundlach attributed this optimistic outlook to active gold purchases by central banks: regulators have been accumulating gold «on a very sharp, steep trajectory» and will likely continue to do so, he said.

The Indian market offers one of the most lucrative opportunities for long-term investments, according to the head of DoubleLine. According to him, a smart investor should now invest in «long-term destinations,» MarketWatch reports.

«It may take 30 years, but you should invest in India because it has the same profile today that China had 35 years ago,» he said.

He believes that India has the same demographic prospects, with the added benefit of global supply chain redistribution increasingly favoring the country.

«Buy Indian stocks and hold them for your grandchildren's college fund and then just try to forget about it,» he said.

In May, when U.S. government bond yields were climbing above 5%, Bank of America said about the «excellent entry level» for investors in 30-year U.S. Treasury Department bonds. According to BofA, the debt securities have good prospects as Washington will be able to get government debt under control.

Already in early June DoubleLine Capital noted that investors have only two approaches left when buying 30-year bonds: either avoid them as much as possible or openly play down.