There's a bubble building in the bond market, market analyst Peter Boockvar said Thursday.
"This is the third bubble in 15 years. It's in fixed income," the managing director at economic advisory firm The Lindsey Group predicted in a CNBC "Squawk Box" interview.
"From what I'm seeing, at least over the past two months—that began really in Europe when the German 10-year yield has gone from seven basis points to 1 percent—is that air is slowing coming out of the fixed-income bond market," Boockvar said.
Similarly, in the past two months, the price on the U.S. 10-year Treasury also sank—driving the yield 25 percent higher.
Last week, total bond funds saw nearly $4.1 billion in outflows—on top of a $2.9 billion exodus the prior week, according to the tracking group Investment Company Institute (ICI).
Since the beginning of the year, however, investors put $42.7 billion into bond funds, after adding $43.5 billion last year.