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Mark Grant: US 10-year yield to hit 1.75%

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Investors will look for a safe haven amid the recent volatility in U.S. bonds, a move that will send the 10-year note yield down to about 1.75 percent, Mark Grant, managing director at Southwest Securities, said Monday.

"I don't see how the Fed could do anything to raise rates," Grant said in a CNBC "Squawk Box" interview. "They're getting a tremendous downdraft. Deutsche Bank estimates the global equity market to have lost $5 trillion since Aug. 11."

U.S. 10-year Treasurys were higher Monday, pushing the yield below 2 percent to about 1.98 percent.

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"I've been telling the large institutions that I talk to and speak with to cut back significantly on their positions in equity and go to bonds and be in a safe place," Grant said.

He also said that, if oil prices fall to the $35 range, the Dow Jones industrial average could shed as much as 1,000 points more.

"Oil's just been creamed," he said. There's just a rout going on and to not recognize it is just silly in my opinion."