US 10-year yield will plunge to 1.5%, expert says

The U.S. 10-Year Treasury yield will dip to 1.5 percent as more investors globally turn to safe investments, an expert said on Monday.

"The U.S. market still appears to be very cheap. That's what causes the yield to come down," Komal Sri-Kumar, president of Sri-Kumar Global Strategies, said on CNBC's "Power Lunch."

Sri-Kumar has maintained a bearish outlook on U.S. Treasury yields since last year. In August, he told CNBC that the yield on the benchmark U.S. bond would fall below 2 percent, under which it has stayed for much of this year.

Getty Images

He believes the 10-year yield can fall about 40 basis points from its Monday afternoon level of about 1.91 percent as demand drives prices higher.

Read MoreWhy Europe's bonds keep finding buyers

Global uncertainty will lead investors to run to safer assets, including bonds in some of the world's more stable economies, Sri-Kumar said. The German 10-year bond yield is currently in negative territory, which makes the U.S. a more appealing safe haven, he said.

Sri-Kumar also believes that the U.S. 30-Year Treasury yield could fall to 2 percent, about 50 basis points lower than where it sat on Monday.

Read MoreUS bond market vigilantes have 'gone fishing'