Pacific Investment Management Co.’s Total Return Fund increased its holdings of U.S. government and related debt as Treasurys surged along with bonds around the world.

The Total Return Fund boosted its stake to 36.42 percent of assets in May from 35.86 percent in April, according to data on the company’s website. The figure is within 1 percent of a 16-month high set in March. Total Return, based in Newport Beach, California, is the world’s biggest actively run bond fund with $86.1 billion in assets.

Bonds are surging globally as investors seek safety following a weaker-than-expected U.S. employment report in May and as British voters debate whether to leave the European Union. The World Bank cut its outlook for global growth this week. Japan’s 10-year yield slid to minus 0.155 percent Friday, the lowest ever. Yields in Germany and the U.K. dropped to records Thursday.

‘Very Strong’

“We will see lower yields,” said Toshifumi Sugimoto, chief investment officer in Tokyo at Capital Asset Management, with 30 years of experience in the bond markets. “Countries all over the world are not doing well. Globally, bond markets are very strong.” Sugimoto said he’s buying government debt in the U.S., Australia and France as well as shares in real estate investment trusts including Omega Healthcare Investors Inc.

Treasurys headed for a second weekly gain, with the 10-year yield dropping two basis points since last Friday to 1.68 percent as of 1:28 p.m. in Tokyo, according to Bloomberg Bond Trader data. It has fallen almost 60 basis points this year. The price of the 1.625 percent security due in May 2026 was 99 1/2.

World gross domestic product will grow by 2.4 percent this year, unchanged from 2015 and down from the 2.9 percent estimated in January, the Washington-based World Bank said Tuesday.

Total Return Fund also added to its holdings of mortgage debt, investment-grade bonds and high-yield securities, according to the website. It had a negative position in developed bonds outside the U.S., indicating a bearish view on the asset class.

The fund’s stake in government securities can include Treasurys and related investments such as inflation-protected bonds, futures contracts and agency debt, according to the Pimco website.

Total Return has gained 3.2 percent this year, according to data compiled by Bloomberg. It ranked in the bottom quarter among its peers, the figures show.