Gundlach on Today's Surprising Driver of Bond Prices: "...Deflation and recession in major economies in Europe is driving European bond rates lower, Gundlach said.“Buying from foreign buyers has been more than sufficient to offset any amount of so-called tapering that has happened from the Federal Reserve,” Gundlach said.International buying of Treasury bonds, he said, is up by $600 billion year-to-date versus last year.Fed policy will keep rates low, he said. “I’m virtually certain that Janet Yellen does not want to raise interest rates,” Gundlach said. Recent easing by the European Central Bank (ECB) will add further support European bond prices. Gundlach spoke Sept. 9 on a conference call with investors. He is the founder and chief investment officer of Los Angeles-based DoubleLine Capital." A copy of Gundlach’s presentation is available here.