DoubleLine's Gundlach: Pressure building on Fed to go negative on Fed Funds

Jeffrey Gundlach, Wall Street's bond king and Founder and Chief Executive Officer of DoubleLine Capital, tweeted out early Thursday.

Gundlach tweeted: Long term Treasury yields are rising, understandably, due to a $4 Trillion growth of the National Debt coming in just the next few months. The Fed has manipulated “Investment Grade” corporate bond yields to below 3%. They will certainly want a lower ceiling for Treasury yields.”

“These Trillions Treasury is borrowing is heavily in T-Bills. Chair Powell has stated in plain English he is opposed to negative interest rates. Yet the pressure to go negative on Fed Funds will build as short-term borrowing explodes and dominates. Please, no. Rates < 0 = Fatal.”

Meanwhile, the US dollar index trades at weekly highs near 100.20 amid global economic uncertainty and simmering US-China tensions.