(Bloomberg) -- Traders are likely to see yields on US 10-year Treasuries in the low 3% range by next year, DoubleLine Capital’s Jeffrey Gundlach predicted on CNBC, following the Federal Reserve’s Wednesday decision to leave its target range for its benchmark rate unchanged. 

“I believe that we’re going to see the yield curve de-inverting, Gundlach said. “I think we will still have bonds rallying. We’ve broken down the trend lines and there’s a lot of room below it.”

Steadfast in his prediction of a recession next year, Gundlach sees the Fed cutting rates by 200 basis points next year and warns that it may even ease monetary policy further if his view of a downturn becomes more widespread in the market.

“I think the economy is going to undershoot the down side and that is going to create a response,” Gundlach said. “We will have to have a lot of money printing.”

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