The bond market took a breather Thursday as equity investors began to shrug off China concerns and strong U.S. retail sales showed a September Fed rate hike could still be on the table. And according to one trader, bonds will continue to selloff in the near term.
"Bonds have made a pretty substantial move higher in this recent pocket of volatility in the stock market," Todd Gordon said Thursday on CNBC's "Trading Nation." The TLT, the ETF that tracks longer-dated bond yields, is up nearly 8 percent from its low on June 26, while the S&P 500 is down less than 1 percent in the same period. "I think the stock market is beginning to stabilize and that's going to set the bond market up for a little bit of a retracement." Bond prices and rates move inversely.