(Adds Gundlach on Mnuchin remarks)
NEW YORK, Feb 23 (Reuters) - Jeffrey Gundlach, chief executive of Doubleline Capital, said on Friday that while bond yields seem to "make sense" at current levels, he has a "low conviction feeling" that they could break out to the upside, representing a "clear and present danger."
Gundlach, on CNBC television, said commodities are the best place to be during the late stage of an economic cycle, which the United States is in at the moment.
Gundlach, known as Wall Street's Bond King, was asked about a series of tweets he wrote late Thursday.
Gundlach, who took to Twitter with a retort to an interviewTreasury Steven Mnuchin gave to Bloomberg on Thursday that attempted to allay investor worries about inflationary pressures, said: "Mnuchin: policies will raise wages w/out inflation. Yeah, sure. And we are going to expand the Buffalo Art Museum without making it bigger."
In the interview, Mnuchin said the economic policies of President Donald Trump and his administration could successfully lift the wages of American workers without triggering overall higher inflation.
On CNBC, Gundlach said: "Inflation is inflationary. If inflation is going up in a certain sector, like wages, then all things being equal, inflation is going up. Sure, there could be some other sector that inflation goes down, but that's not happening right now."
(Reporting By Jennifer Ablan; Editing by Chizu Nomiyama and Steve Orlofsky)
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