The bond yield's big breakout is for real. 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.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

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Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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