Real yields across select major economies remain in negative territory as inflation expectations rise, said Thornburg.
Jason Brady, president and chief executive, believes that the situation is unprecedented and extremely stimulated to the global economy. In which, the United Kingdom, Germany, France, the United States, Australia and Japan all suffered a negative real rates, ranging from -0.31 percent to -2.70 percent.
"China has a very big market with positive real yields," said Brady.
Inflation expectations have been picking up, which has yet to be anchored, he said.
Rocky Wang Lei, portfolio manager and managing director of Thornburg Investment believes the Federal Reserve seems comfortable with rising yields and inflation, which temporarily overshoots its target level.