Bond King Gundlach: 30-year yield could rise above 4%, 10-year rate to 3.6% before this move ends

Jeffrey Gundlach wouldn't be surprised to see Treasury yields leap to new multiyear highs before the bond market calms down.

"If you look at the charts and you look at the way the market's behaving and you think about the trends that are underneath the bond market, it wouldn't be surprising at all to see the 30-year [yield] go to 4 percent before this move of the breakout above 3.25 percent is over," he said on "Halftime Report" Thursday.

"The curve should probably steepen so maybe the 10-year Treasury makes it to 3.5 percent or 3.6 percent during that move," he added.

Gundlach is founder and CEO of DoubleLine. He is known for his investment acumen in the fixed income markets. DoubleLine has assets under management of more than $120 billion, according to its website.

Treasury yields have soared in recent weeks as economic data fostered optimism about the American economy, sending both the 10-year rate and the 30-year rate above multiyear highs, and beyond what the so-called Bond King dubbed a "game changer."

The DoubleLine Capital CEO wrote on Twitter in September, "Yields: On the march! 10's above 3% again, this time without financial media concern. Watch 3.25% on 30's. Two closes above = game changer."

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As of the latest reading, the 10-year Treasury note yield was at 3.17 percent, down from seven-year highs above 3.2 percent notched earlier in the week.

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