Strategist Mark Sullivan advised investors to shorten government bonds that have higher interest rates in the future.

David Roche (president and global strategist, Independent Strategy) shared his views on the uncertain economic environment in Monday’s episode of “Squawk box Europe”.

His stance was that I would be very short on bonds, he stated. “Short [German]Short BTPs in Italy have seen a rise and bunds are now showing a positive yield. I’d say that I would definitely be short [U.K.]We’ll see a remarkable inflationary spiral here in the U.K. gilts, too

On Monday, European sovereign bond yields rose all over the board. The yield on Germany’s two-year government bond rising by 3.5 basis points to -0.215% — its highest since September 2015. Yields German five-year bondsAlso, they briefly rose to their highest point since 2018 This month German 10-year bund yieldsRose above zero for the first time in almost three years.

Meanwhile, Italian 10-year yieldsThe Monday increase to 1.776% was the largest since May 2020. Yields also rose on Monday. Italian two-year bondsthey were at their highest point since mid 2020. The yield of the U.S. Treasury bond was at its highest since mid-2020. 10-year Treasury note fell to around 1.9014% by 10:30 a.m. London timeAfter a powerful surge during the last session.

Yields are inversely related to bond prices. This is why traders “short” bonds as an investment because they believe their value will drop.

After Klaas Knot’s hawkish remarks on Sunday, the president of the Dutch central banks and a member the European Central Bank’s Governing Council was a part of the European Bond Market, the market moved in favor of European bonds. Speaking to Dutch TV show “Buitenhof,”Knot stated that he expects the ECB will raise interest rates before the end of the year. A second rate increase is likely shortly afterwards.

When the ECB made its announcement last week that it had been keeping interest rates unchanged across the euro area, ECB President Christine Lagarde did not reinforce her previous guidanceAccording to a press conference, a rate rise was not likely in 2022.

The ECB is resisting pressures to increase rates during unprecedented inflation. hitting a record 5.1% last monthThe central bank is behind the American and British counterparts in normalization efforts.

Roche, however, told CNBC Monday’s market reaction was to expect rate increases from “pretty well all major central banks throughout the course of the year,” with speculation that we are not yet halfway to the destination.  

Roche stated that Russia could invade Ukraine and alter the world’s economy and markets. Jake Sullivan (White House National Security Advisor) warned on Sunday that an invasion could come “any day now.”