The bullish case for bonds: Pimco exec Crescenzi

The new 'normal' for rates in 2014: Expert
The new 'normal' for rates in 2014: Expert

Longer-term bonds rates are normalizing as the U.S. Federal Reserve scales down its asset purchases, but the central bank's policies should still anchor shorter-term bonds well into the second half of 2015, Pimco's Tony Crescenzi told CNBC on Thursday.

"The Fed is losing its grip on longer rates," Crescenzi said on "Squawk Box." "Short rates it controls, and it will control them until a rate hike is near, and that's somewhere in 2015probably the latter half given what the Fed told us."

Crescenzi, a portfolio manager and executive vice president at Pimco, said investors have had time to prepare for rising rates in longer-term bonds because the Fed telegraphed its decision to taper its massive bond-buying program in May 2013 before actually reducing its purchases last week.

Fed policies should help contain 10-year Treasury yields under 4 percent and mainly between a range from 2.75 to 3.25 range next year, "simply because the economy has momentum that people are banking on."

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Pimco projects 2.5 gross domestic product growth next year, Crescenzi said. Overall economic acceleration cause a new high 10-year yields and scare bonds investors, but it won't be a "meaningful high," Crescenzi said.

— By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen.