Government bond yields are hitting all-time lows, leading investors on a hunt for yield which is scaring Cowen and Co.'s David Seaburg.
"When you look at ... the outright chase for yield recently, it actually scares me quite a bit to step into some of these names that have been really bid up. I look at the overall market and … I really think that we're in a tape right now that's incredibly unpredictable. You've got hedge funds that are incredibly underweight equities and they're underperforming. That's the worst-case position they could be in right now," the firm's head of sales trading said Friday on CNBC's "Squawk on the Street."
A combination of elements, including fears over a possible Brexit and about the underlying global economy, has sent investors looking for safe havens in lieu of risk assets.
Adding fuel to the Brexit fears, The Independent released a poll Friday showing the "leave" camp has gained a lead over the "remain" camp.
On Friday, the 10-year German bund yield hit a fresh all-time low, closing in within a whisker of zero, while the benchmark U.S. 10-year yield traded near its lowest level since February. Prices and yields move inversely.