Long-term government debt, which has provided some of the best market returns for decades, now poses the greatest threat to portfolios, investor Wilbur H. Ross told CNBC.

Ross added his voice to the warnings regarding Treasurys at the far end of the yield curve , cautioning that the inflation specter is about to creep up and hammer the value of fixed-income government securities.

"I think the greatest bubble that is about to burst is the 10-year and longer Treasury, because the idea that inflation is gone forever and for all time, and therefore these artificially low rates can last, is silly," the president of W.H. Ross & Co. said in an interview.

The long run in government debt growth has been boosted by accommodative policies at the Federal Reserve , which has held its targeted funds rate near zero since the explosion of the financial crisis, keeping government yields low, as well.

However, the 10-year in particular has begun to creep higher lately, most recently trading at 2.36 percent, its highest level since October.

That has caused some investors to wonder whether inflation pressures driven by historically loose Fed policy finally will come home to hammer fixed-income markets.

"I'd rather be in equities than in 10-year Treasurys," Ross said.

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