El-Erian Warns Global Bond Sell-Off Has Further to Run
Economist Mohamed El-Erian says the global bond rout is not finished and criticizes the U.S. Treasury's market intervention as excessive.
Prominent economist Mohamed El-Erian told CNBC on Monday that the worldwide sell-off gripping bond markets is unlikely to have run its course, warning investors that further turbulence lies ahead as yields continue to climb and pressure mounts across sovereign debt globally.
El-Erian, who serves as chief economic adviser at Allianz and is widely regarded as one of the most influential voices in global finance, delivered the assessment during a wide-ranging interview in which he also took direct aim at U.S. Treasury policymakers. He argued that the Treasury had gone "a step too far" with its recent market intervention, suggesting that official action had overreached in ways that could complicate the path forward for financial markets.
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The comments land at a particularly sensitive moment for fixed-income investors, who have already absorbed significant losses as bond prices have fallen sharply amid persistent inflation concerns and uncertainty over the trajectory of central bank policy. A prolonged sell-off would raise borrowing costs not only for governments but also for corporations and consumers, amplifying economic stress at a time when growth outlooks remain fragile in several major economies.
El-Erian has consistently cautioned that policymakers risk misjudging the duration and severity of inflationary pressures, and his latest remarks reinforce that broader thesis. His criticism of the Treasury intervention adds a notable voice of dissent to ongoing debates about how aggressively officials should step in to stabilize markets versus allowing price discovery to proceed.
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