Bond Rates May Inch Up: Gundlach

Increases in U.S. Treasury bond interest rates will mean a continued "buy," DoubleLine Capital CEO Jeffrey Gundlach said Tuesday.

"Rates were too low down at 1.6 on the 10-year, and they were certainly too low at 1.38 on the 10-year about 10 or 11 months ago, but I think there's quite a bit of support at about 2.40 on the 10-year, particularly against an environment where commodity prices are weak," he added.

The yield on the U.S. 10-year Treasury ticked up 2.139 percent.

(Read More: Bond Sell-Off: Two Brokerages Face Off)

On CNBC's "Fast Money," Gundlach also noted action against a key level.

"They look like they're about to break down to me, actually, below the shelf they've been vs. the CRB Index," he said.

Gundlach said that he expected yields to inch higher.

(Read More: Apple Stock Heading to $500: Jeffrey Gundlach)

"I think rates can rise a little bit more," he said. "We'll be a buyer in our bond funds with increases in Treasury rates above where they are today."

Gundlach, whose DoubleLine Capital has $60 billion in assets under management, also noted that increases could impact more than just the bond market.

"I just think that interest rates moving higher from here are going to damage sectors other than the bond market, frankly," he said.

(Read More: Goldman: This US Treasury Sell-Off Is for Real)

"We're at the point where further interest rate rises, I think, start to take out some of the alternatives people have gone to to try to escape from what they think is unacceptable bond returns. For example, REITs, particularly mortgage-related REITs have been super-weak."

Trader disclosure: On June 4, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long AAPL; Joe Terranova is long SPLK; Joe Terranova is long GLD; Joe Terranova is long TBT; Joe Terranova is long SWN; Joe Terranova is long GOOG, $870 PUTS; Joe Terranova is long GS, $165 PUTS; Steve Weiss is long LCC; Steve Weiss is long BAC; Steve Weiss is long C; Steve Weiss is long F; Simon Baker is long AAPL; Simon Baker is long C; Simon Baker is long CSCO; Simon Baker is long YHOO; Simon Baker is long FB; Simon Baker is long GOOG; Simon Baker is long EBAY; Simon Baker is long PCLN; Simon Baker is long GM; Simon Baker is long VIAB; Josh Brown is long AAPL; Josh Brown is long DD.