Lucy Nicholson/Reuters
- Mohamed El-Erian said markets are embracing a "soft landing scenario" as the US two-year bond yields fell.
- The yield drop followed the Federal Reserve's latest communique on inflation and interest rates on Wednesday.
- Investors are optimistic the Fed will soften its rate policy, raising the odds of a mild economic downturn.
Top economist Mohamed El-Erian says markets are embracing a "soft-landing scenario" for the US economy, as reflected in the latest declines in short-term bond yields.