'New Bond King' Jeffrey Gundlach: "U.S. Treasuries are no longer safe haven assets... Liquidation crisis ahead"

Jeffrey Gundlach, CEO of DoubleLine Capital, a leading U.S. bond investment firm, warned that "The enormous U.S. debt burden and interest costs have reached an unsustainable level," and stated, "U.S. Treasuries are no longer genuinely 'flight-to-quality' assets." On the 11th (local time), according to Bloomberg, Gundlach said at the Bloomberg Global Credit Forum, "Long-term U.S. Treasuries are no longer considered legitimate and reliable risk-free investments," adding, "We can now see a clear erosion of trust in the market for U.S. Treasuries. The moment of liquidation is approaching." He pointed out, "As U.S. government debt approaches $37 trillion, the interest burden is rapidly increasing, and as low-rate bonds mature and are reissued at higher rates, the problem is worsening." He also advised, "Global funds that had flowed into U.S. assets may gradually exit," and suggested, "It is necessary to reduce the proportion of dollar assets and increase allocation to non-dollar assets."