I'm convinced Gundlach is a technical analyst first and a fundamental guy second. He's ridiculously good at reading charts. Or someone who works for him that has his ear is.
American pension funds and insurers own about 10% of the US bonds, and seems to play a less substantial role in setting yields than European institutions. The liabilities of these companies and funds tend to be longer-dated than the bonds they hold. So when long-dated bond yields fall, their financial position deteriorates. This means they need to buy more bonds, and this drives prices up. Rinse and repeat. What a pickle.
American pension funds and insurers own about 10% of the US bonds, and seems to play a less substantial role in setting yields than European institutions. The liabilities of these companies and funds tend to be longer-dated than the bonds they hold. So when long-dated bond yields fall, their financial position deteriorates. This means they need to buy more bonds, and this drives prices up. Rinse and repeat. What a pickle.
