El-Erian, speaking to CNBC's Carolin Roth at the Ambrosetti Forum in Cernobbio, Italy, said traditional buyers of US Treasurys are becoming less reliable, pointing to China's reduced willingness for geopolitical reasons, domestic issues in Japan and the Gulf, and Norway's sovereign wealth fund reconsidering its Treasury allocation, according to the report.

He said the imbalance between bond issuance and reliable buyers, rather than inflation or Fed credibility, is driving the pressure on rates, CNBC reported.

El-Erian identified the UK, Japan and France as the G7 countries most vulnerable to sovereign debt problems, telling CNBC the UK is a "high-beta country" that moves more sharply than the US on rate changes, the report said.

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