Inflation is likely three to five years down the road, and investors should stay relatively close to the front end of the yield curve where the bond prices are protected by the Fed position of low Fed funds and interest rates, said Bill Gross, co-CIO and founder of Pimco.

“Further out on the curve, anticipate deterioration in inflation, a deterioration possibility in terms of the dollar, which will produce negative returns for those long-dated securities,” Gross told CNBC.