Pacific Investment Management Co. (Pimco) funds that held an underweight position on Japanese government bonds (JGBs) are changing their stance as yields march to multi-year highs.

The American investment management firm has turned "overall neutral” on JGBs, according to Sachin Gupta, a portfolio manager at the company and a 27-year investing veteran who helps oversee more than $43 billion in assets. He now sees value in 30-year bonds, whose yields have climbed to the highest since 2006 as traders expect the Bank of Japan to keep hiking interest rates this year while peers from the U.S. to Australia ease monetary policy.

"Rates have gone up, but they have basically gone up in line with our expectations from a while ago,” Gupta said in an interview in Singapore. "And so that’s why it makes sense to take profits and reassess.”