Bond investors are sweating bullets. In 3½ months, the 10-year yield has risen from about 1.6 percent to over 2.9 percent, before cooling off in recent days. And on Thursday, bond expert Jeffrey Gundlach made the case that the 10-year yield could reach 3.1 percent by end of the year.
(Read more: Gundlach: This market is just 'fear and loathing')
As yields rise, bond prices fall, so the move in yields has been very painful for those who have owned bonds, and investors are heading for the exits. Bond funds saw outflows of $36.5 billion in the first 22 days of August, according to TrimTabs. Bond giant Pimco saw $7.4 billion worth of outflows in July alone, and double that in June.
(Read more: Pimco: Media to blame for huge bond market exodus)
But Tony Crecenzi, Pimco executive vice president, market strategist and portfolio manager, believes that the bearishness has gotten overdone. On CNBC's "Futures Now" on Thursday, he made the case that "yields will move lower from here," and he provided three reasons why.
1: Economic fundamentals don't support these yields
Crescenzi said that yields could rise a bit more due to technical reasons, but the fundamentals don't support it.
After all, "what's priced into the bond market is the idea that the economy, in 2014, will accelerate," Crescenzi said.
But he throws cold water on the rosy economic picture that some are drawing. "Bond investors will begin to reassess whether or not the optimistic forecasts, including the Fed's own forecast, will come true."
Indeed, many have questioned the accuracy of the Federal Reserve's forecast for 3 to 3.5 percent GDP growth in 2014. On Tuesday, Krishna Memani, OppenheimerFunds' chief investment officer of fixed income, said on "Futures Now": "The economic growth that we're looking for in the Fed's forecasts is probably a bit overstated," and for that reason, he, too, sees rates dropping.