Pacific Investment Management Co.’s Mohamed El-Erian said that the U.S. tax agreement worked out by the Obama administration is good for growth as reflected in gains in stocks and commodities and declines in bonds.

“It puts pressure on the fiscal situation so bonds are selling off,” El-Erian, chief executive and co-chief investment officer of the firm that runs the world’s biggest bond fund, said in an interview on “Bloomberg Surveillance” with Tom Keene. “It is very important that the market is interpreting it as good for growth, so risk assets are rallying across the board.”

Click here for full article!