Why Treasury Yields Defy Market Selloff

U.S. Treasuries just can't lose, primarily because of America's demographic shifts, says fixed-income manager Gundlach.

Blame the harsh winter for stifling economic growth or tensions in Ukraine for sparking demand for havens.

Jeffrey Gundlach, the star fixed-income manager whose mutual fund beat 97 percent of its rivals the past three years, has a simpler explanation for why investors have gotten the bond market so wrong this year: the aging of America.

Older Americans will also buy more Treasuries for steady, low-risk income, said Gundlach, who was named “Money Manager of the Year” by Institutional Investor magazine for 2013.

His $32.5 billion DoubleLine Total Return Bond Fund has posted an annual 5.9 percent gain in the past three years, more than double the peer average, data compiled by Bloomberg show.

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