Watch Art Cashin: 'Real reaction' still to come

Cashin says: Market is determined

Art Cashin says it's "amazing" stocks haven't been hurt as the U.S. 10-year note's yield topped 3 percent, but he's "a little skeptical" the milestone will continue to be ignored for long.

Cashin, UBS' director of floor operations at the NYSE, told CNBC's Mary Thompson that "we're not seeing (trading) desks that are fully staffed. So the real reaction will come, probably, after New Year's when we get to see it."

In the meantime, he expects the Santa Claus rally will continue. "For now the market seems to be determined. There are people still chasing yield. The pension funds are redirecting money. So it should carry through New Year and we'll have something to really drink Champagne about this year."