Jeffrey Gundlach says he expects markets to reverse postelection moves

Jeffrey Gundlach speaking at the Sohn conference in New York on May 4, 2016.
David A. Grogan | CNBC
Jeffrey Gundlach speaking at the Sohn conference in New York on May 4, 2016.

There will be "trouble for equity markets" if the yield on the benchmark 10-year U.S. Treasury note moves beyond 3 percent, Jeffrey Gundlach, chief executive of DoubleLine Capital, warned on Tuesday.

Late Tuesday, the 10-year yield stood at nearly 2.38 percent.

In his first investor webcast this year, Gundlach said after the recent huge run-up in U.S. stock markets, investors should look to "peel off" their exposure to equities. Gundlach, known on Wall Street as the 'Bond King', said he expects markets to reverse their post-election moves.

About interest rate hikes by the Federal Reserve this year, Gundlach said: "All things being equal, the Fed will hike in June." He expects two hikes this year with three possible.

WATCH: Gundlach: Right now the market is a no man's land