Pimco’s Total Return Fund cut US government-related debt in January and raised holdings of mortgage-backed securities, corporate debt and foreign-currency bonds.

The allocation signaled the world's largest bond fund by assets reached for higher yields last month, outside the ultrasafe US government debt market. The yield on the benchmark 10-year Treasury note tumbled nearly half of a point last month, the biggest monthly decline since August 2011. Yields fall as their prices rise.