The bond market has been making moves that the U.S. dollar just isn't buying.
On Monday, short-term bond yields hit their highest levels since January. This reflects slightly increased expectations on how willing the Federal Reserve will be to raise its interest rate targets over the course of the year.
But Boris Schlossberg of BK Asset Management sees one big problem with the recent move higher.
"Something interesting is happening right now. Yes, yields on the short-term bonds are going up, but the currency market is totally not buying it. The dollar is not rising," Schlossberg said Monday on CNBC's "Trading Nation."
Schlossberg said given the rise in short-term yields, the dollar should be rising against the yen and the euro. Expectations of increasing short-term rates tend to boost the dollar against other currencies, as it increases the yield that traders can hope to earn by holding dollars.
The unusual divergence "tells me that maybe this is just a fake-out rally in yields in the near-term ... and the market is simply getting ahead of itself," he said.