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Portfolio Playbook: TCW's bond plays

The Federal Reserve building in Washington, D.C.
Kevin Lamarque | Reuters
The Federal Reserve building in Washington, D.C.

U.S. government debt prices were lower on Thursday as investors digested comments by Federal Reserve Chair Janet Yellen and ECB President Mario Draghi.

The yield on the benchmark 10-year Treasury notes sat higher, at 2.3082 percent, after closing at 2.178 percent.

The yield on the 30-year Treasury bond also higher, at 3.0552 percent, after closing at 2.907 percent.

Read MoreWall Street weighs hike timing

Bryan Whalen, co-manages the five-star Metropolitan Total Return Bond Fund for TCW, the Los Angeles-based global asset management firm with $180 billion in total assets.

Whalen told CNBC's "Power Lunch" Thursday that a move by the Fed is all but inevitable later this month.

"The Fed will hike rates in a few weeks, no doubt about it," said Whalen. "Very little could derail their decision. Going forward what's more important is the pace and communication by the Fed."

According to Whalen, Fed hawks will be especially encouraged by the lift-off.

"It will bolster the idea that the Fed will tamp down any type of inflation that picks up in the next year," said Whalen. "And that is good for the long end of the curve."

"Our strategy for 2016 is to keep our powder dry, keep liquidity in the portfolio fairly high, and keep things close to the vest," said Whalen.

TCW: Eight Reasons The Fed Will Hike In December:

1. The Fed wants to get off zero

2. The jobs market is robust

3. August/September volatility has subsided

4. Deflationary fears have been reduced

5. The dollar is strong, but not overwhelmingly

6. If not December, then when?

7. The Fed's credibility depends on it

8. The market is pricing it in

TCW's Metropolitan West Total Return Bond Fund I has a one, three and five year return of 5.99 percent, 11.55 percent and 11.66 percent, respectively. The fund holds a five star ranking from Morningstar.