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Bond Strategists Divided On Rate Cuts

Scarcity may be driving stocks higher, but what of bonds? Michael Pond, a fixed income strategist at Barclays Capital, and T.J. Marta, economist & chief fixed income strategist at RBC Capital Markets, gave "Morning Call" viewers the bull and bear perspectives on bonds.

Pond cautioned CNBC's Mark Haines that despite last week's softer consumer price index figures, overall core personal consumption expenditures remain "above the Fed's comfort range." Thus, he foresees that rates will move higher, if gradually. The upshot: The Federal Reserve is "on hold" for now and bonds are "unlikely" to price in cuts. The strategist recommended that would-be bond investors look at the "best place," Treasury Inflation Protected Securities (TIPS).

Marta disagreed with Pond's outlook, calling bond decisions a matter of "nuance and timing" -- and maintained that the market remains "fixated" on indicators like the usually harder CPI. He believes the bond market will, in fact, "continue to price in easing."