Jeff Gundlach expects the yield on the 10-year Treasury to continue to slide, and he sees higher odds for a return to the 2012 all-time low of 1.39 percent because of the massive under-positioning in the bond market.
Gundlach, founder of DoubleLine and co-manager of the DoubleLine Total Return Bond Fund, told CNBC's that the 10-year yield is likely heading to just under 2.5 percent, but that there is now a 30 percent chance it could fall back to the 2012 lows. He initially gave odds of 10 percent when the yield bottomed in July 2012.
Gundlach was a presenter at the Ira Sohn Investment Conference in New York Monday. CNBC broadcast from the event.