U.S. government bond yieldsare a “mispriced asset class” and represent a bubble to avoid, Leon Cooperman of Omega Advisors told CNBC on Thursday.

“I think the bubble that exists today is in U.S. government bond yields,” he said on “Fast Money.”

“There’s a very pessimistic price structure built into many equities, and the bond yields, in my opinion, are being subsidized by the government, so I want to be out of U.S. government bonds. I think they’re a mispriced asset class,” he said.

“I’m not short them because I recognize the financial repression policies being followed by the Fed, and I want to be in select number of equities. And I can find many, many equities that are attractively priced.”

(Read More: Cooperman: Market in ‘Zone of Fair Valuation’)

Cooperman pointed to the Bloomberg high-yield index, which in November 2008 stood at 25 percent. “Today, it’s less than 7.”

(Read More: )

“The multiple in the market today is lower than it was when high yield was 25 percent, so I’m left with equities by default,” he said. “I think equities generally speaking are the place to be.”

Trader disclosure: On Sept. 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long GLUU; Jon Najarian is long STSI; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in GS; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in TGT; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in MSFT; Jon Najarian is long call spreads in QCOM; Jon Najarian is long call spreads in KMI; Enis Tanner is long BAC PUTS; Enis Tanner is long GS; Enis Tanner is long XLU PUTS; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long AIG.

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