Mohamed El-Erian on the bond markets: 'If you stick with the old rules, you will lose'

Economist Mohamed El-Erian told CNBC Friday that investors need to think differently about the global bond market.

A 30-year bull run for fixed income has continued this year with estimates earlier this summer showing that approximately $15 trillion of government bonds now traded with a negative yield.El-Erian, a well-known economist for Allianz who used to run investment giant Pimco, told CNBC that the market needed to be looked at in relative terms.

Estimates earlier this summer showed that approximately $15 trillion of government bonds now traded with a negative yield. Yields have an inverse relationship to a bond's price and a negative yield would mean an investor is essentially paying for the privilege of holding a country's sovereign debt. That $15 trillion figure has nearly tripled since October 2018 with an expectation that central banks will continue to support the market with low rates and possible asset purchases.

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