He believes U.S. bond yields are likely at their bottom, and the U.S. dollar will likely continue to strengthen.
"Markets are too sanguine about the stability in short rates continuing to hold, and likely also too relaxed about how low volatility can stay."
Others also expect the Fed is likely to disrupt the "lower for longer" expectations.
"The big risk in the U.S. is that the Fed will raise rates earlier and further than generally expected," Julian Jessop, an economist at Capital Economics, said in a note Wednesday.
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"There is less spare capacity, especially in the labor market, which means both wage growth and core inflation will rise more quickly," he said, adding the rate increases may begin as soon as the first quarter of next year. "By the end of 2017, U.S. rates could be back at 4 percent, pulling the dollar and bond yields higher."
Some investors are already preparing for the shift.
JPMorgan is gradually trimming its long credit market positions in its model portfolio and shifting toward more liquid risk assets, citing a worst-case scenario of higher rates causing bond-market convulsions.
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"A sudden rise in U.S. short rates could easily entice fast outflows from higher yielding bond funds," potentially spurring broad market liquidity problems, Jan Loeys, managing director at JPMorgan, said in a note last week.
To be sure, some expect a disruption of the lower-for-longer theme in favor of "normalization" of interest rates offers more opportunities for carry trades.
"The combination of a risk-on environment and a normalization scenario would argue for currency markets more driven by relative returns on assets," Herve Goulletquer, head of global markets research at Credit Agricole, said in a note Monday.
Better global economic growth prospects and rising liquidity expectations from the European Central Bank taking a more dovish stance compared with the Fed should be favorable for carry trades, he said.
—By CNBC.Com's Leslie Shaffer; Follow her on Twitter @LeslieShaffer1