M&G's head of retail fixed interest Jim Leaviss has described how US Treasuries are looking cheap for the first time in years, but are dependent on the future actions of Federal Reserve chairman Janet Yellen.
Leaviss is manager of several M&G bond funds including the £1.6bn Global Macro Bond fund.
He highlighted 10-year US Treasuries as a good asset to hold but said it would all depend on the Fed's "dot plot".
"10-year US Treasuries are looking interesting for the first time in a very long time, they are cheap if the Federal Reserve dot plot is to be believed."
Having hiked rates in March, its third since December 2015, the Fed has said it could raise rates twice more this year.
The most recent dot plot indicates US rates are likely to be 1.3% in 2017, 2.1% in 2018 and 3% in 2019.
However, Leaviss questioned if current Federal Reserve chairman Janet Yellen would accept a second term once her first term is over in January 2018.
US President Donald Trump was critical of her during his election campaign and indicated she should step down, but he has since reversed this view and is in favour of her low interest rate policies.
Leaviss said: "I think Yellen would find it very difficult to turn down a second term, but she also knows she is likely to be fired if there is any downturn or sell-off in stocks.
"Will Trump appoint a businessman crony, a gold nutter or someone with little grasp of monetary policy instead?"
Leaviss suggested economist John Taylor or former Federal Reserve governor Kevin Warsh as possible alternatives but countered they have more hawkish views than Yellen.
Away from the US, the bond manager disputed the view the bond bull market is over, which has been a common industry refrain over the last few months.
"The idea that the 30-year bond bull market is over is massively premature and a massively short-sighted view."
The M&G Global Macro Bond fund has returned 12.5% over one year to 17 May, according to FE, versus an IA Global Bond sector average of 10.6%.
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