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The bond yield's big breakout is for real. Here’s why

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The big bond yield breakout is here to stay, and here’s why

As the 10-year Treasury yield holds steady around 3 percent, some may wonder whether higher rates are here to stay.

Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, said the breakout on the 10-year yield would last. He explained why Wednesday on CNBC's "Trading Nation."

• The natural pressures of steady growth, tightening monetary policy and rapidly expanding Treasury paper points to higher rates from here.

• Tuesday's Treasury auction for the 3-year note saw the weakest demand since November, with yields hitting a decade-high. Demand at the auction was broadly weak.

• Ultimately, debt markets will no longer sop up U.S. issuance, and that will create a natural pressure on yields. This means the dollar rally should continue, bond prices will fall and equities will need much stronger growth to rise.

Bottom line: After a break above 3 percent, the 10-year Treasury yield is likely headed higher.