Jeffrey Gundlach, CEO of investment management firm DoubleLine Capital, thinks Treasury prices have peaked and that the 10-year Treasury yield could soar 100 basis points before the end of the year.

That yield recently stood at 1.77 percent, up from the July record low of 1.38 percent. (One basis point is equivalent to 0.01 percent, or one-hundredth of a percentage point.)

Investing in Treasurys doesn’t make any sense now, Gundlach tells CNBC. “What are you hoping for? 1.25 percent? That still doesn’t give you much of a return.”

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DoubleLine has its lowest interest rate exposure in history, he says.

Gundlach doesn’t see the Federal Reserve’s latest easing move helping the Treasury market much. “It’s not very big. It’s [Fed Chairman Ben] Bernanke trying to do something.”

Gundlach doesn’t blame the Fed, given Washington’s gridlock. But, “the Fed won’t bring interest rates down. Just look at the bloodless verdict of the market,” he says.

Yields are little changed since the central bank announced its decision last Thursday.

Gundlach is unhappy with the Fed’s activist approach. “I don’t like to see the markets being so grossly manipulated,” he says.

“You don’t know what investors think because price discovery is being destroyed by government intervention. … I think we should have market pricing.”

Another bond luminary, Pimco’s Bill Gross, also is unenthusiastic about Treasurys in the wake of the Fed’s move.

“Buy real assets – gold, a house!” he wrote on Twitter Friday. Gross reduced the Treasurys allocation in Pimco’s Total Return Fund to 21 percent last month from 33 percent in July.

Editor's Note: Economist Warns: 50% Unemployment, 100% Inflation Possible