The pullback underscores how confident investors are that the Fed has brought inflation back under control.
"Finance-based capitalism depends on a positive yield curve," the Pimco co-founder said.
The Fed chairman forcefully pushed back on hopes of a rate cut in March.
Bond yields tend to fall around the time of Federal Reserve meetings.
The central bank should lower interest rates over the next six to 12 months, he said.
Traders said retail sales have been too buoyant to figure in fast rate cuts in the short term.
All major asset classes fell in the holiday-shortened week.
Bond traders may be underestimating the economy's strength and the persistence of inflation pressures.
Most Wall Street strategists are predicting that the trend of lower yields will persist.
A key baseline for the cost of money has jumped more than four percentage points over three years.
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