Bonds look the most attractive in a decade compared with stocks as interest rates climb, according to Mark Kiesel, portfolio manager at Pacific Investment Management Co.

“Yields are finally competition for dividends,” Kiesel, chief investment officer for credit at the $1.7 trillion money manager, said Friday in a Bloomberg Radio interview.

“Bonds are looking as attractive versus U.S. equities as they have in 10 years.”

Yields on 10-year U.S. Treasuries climbed Friday to their highest level since 2011.

Kiesel also said:

• Pension funds and insurance companies will most likely benefit from rising rates
• Investors should stick to shorter-term bonds because rates are likely to continue to rise on longer-term debt
• Rates on 10-year Treasuries could climb to 3.5 percent
• Rising rates are starting to impact housing, driving up inventories in high-cost areas such as New York as sales slow