Global bond sell-off likely not over yet, Mohamed El-Erian tells CNBC

Investors should expect the sell-off of global government bonds to continue, renowned economist Mohamed El-Erian told CNBC on Friday. "I don't see any appetite in the U.S. for immediate fiscal consolidation. So I suspect we will continue to see upward pressures on yields," he told CNBC's Carolin Roth at the Ambrosetti Forum in Cernobbio, Italy.Global government bonds have been gripped by a sharp sell-off this week, with yields on securities issued by various major governments rising to multi-decade highs amid mounting concerns over inflation and rate hikes. Bond yields and prices move inversely to one another. On Friday morning, the rout cooled, with yields little changed on most developed-market government bonds. U.S. Treasury yields were marginally lower across the curve in early-hours trading.El-Erian, the Rene M. Kern Practice Professor at the University of Pennsylvania's Wharton School and chief economic adviser at Allianz, told CNBC he did not see anything wrong with how the markets were functioning – but added that "reliable buyers and holders" of U.S. Treasurys were coming under pressure. "China, for geopolitical purposes, is no longer as willing," he said. "Japan and the G...