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.
• 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.