Salient to Investors:

Bond managers are telling investors the worst may be over for T-bonds after 10-year yields rose to a 22-month high.

Jeffrey Gundlach at DoubleLine Capital says July will not be the same type of month and 10-yr yields will be meaningfully lower by the end of 2013 Gundlach said interest rates won’t increase because of the economic impact, such as in housing, where affordability has been radically changed following an increase in mortgage rates and home prices.

Bill Gross at Pimco said the Fed has historically been too optimistic about the economy, and says 10-year T-yields can go 0.25 percent lower. Gross likes 10-years, 5-years, and safe assets that are overyielded and underpriced.

William C. Dudley at FRB of New York said the Fed may prolong QE should the economy fail to meet the Fed’s forecasts.

Freddie Mac says the average 30-yr fixed mortgage rate is at 4.46 percent.

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