The yield on the 10-year Treasury could increase a half percent by the end of next year, investor Dennis Gartman said Wednesday on CNBC. But he argued that a move like that won't hurt the economy.
The publisher of The Gartman Letter told "Squawk Box" that he sees a "massive top" in the bond market, and he's shorting the long end of the yield curve.
Bond yields were slightly lower early Wednesday, after rising Tuesday on speculation that the Federal Reserve could begin to scale back its $85 billion monthly bond purchases sooner than expected—may be as early as December—because of last Friday's strong October jobs report. The 10-year Treasury yield pushed above 2.79 percent Tuesday for the first time in nearly two months.
"Rates at the long end of the curve are probably quietly going to go higher. They're not going to go higher in a short period of time," Gartman said. "Over the course of the next six months, 12 months, we'll take the yield on the 10 year from 2.76 percent above 3 percent with no difficulty. We may get to 3.25 percent before the end of next year. But I don't see that really being detrimental to the economy."
(Read more: Dennis Gartman sees 'massive top' in bond market)