Something in the bond market beyond this week's jump in yields for 10-year Treasurys has one Wells Fargo strategist on alert.
"It's supply," Michael Schumacher, head of rate strategy at Wells Fargo, told CNBC's "Futures Now" on Tuesday. "When you think about the enormous amount of debt that U.S. Treasury's got to issue over not just this year, frankly, but next year, it's staggering."
The issue of government supply is one Schumacher calls "humungous" to the bond market. By his calculation, the Treasury will issue more than $500 billion in notes and bonds (net) in the second to the fourth quarter, pushing the total to around $650 billion for the year. Last year, the total came to just $420 billion.
"That's an increase of more than 50 percent," said Schumacher. "Who is going to buy these bonds? I think it's like playing whack-a-mole. You see a potential buyer pop up, and as soon as you know it, the buyer disappears. So it's a real challenge."