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$565 billion bond bull

Government bond markets sell off, bond rout continues German bund
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The Federal Reserve raised its benchmark interest rate for the first time in nine years on Wednesday. The 25 basis point hike ends the longest U.S. interest rate drought in modern history, with 84 months of near-zero official rates.

"Janet Yellen gave confidence to the markets," said Robert Tipp, head of global bonds and senior portfolio manager at Prudential Fixed Income.

Tipp told CNBC's "Power Lunch" on Thursday that he remains firmly bullish on bonds right now.

"This is the classic contrarian opportunity in the bond market," Tipp said. "Fixed income will continue to provide ballast to portfolios relative to higher volatility sectors, such as equities and real estate."

Tipp is bullish right now on select issues within high yield, in structured products, high quality CLOs, CMBs, and the upper and middle end of hard currency emerging markets, including Cypress and Greece.

Tipp oversees $565 billion in assets for Prudential Fixed Income, including the Prudential Total Return Bond Fund and the Prudential Global Total Return Fund