Treasury Yields Signaling Rally: Pro

Ten-year U.S. Treasury bond yields could be signaling a continued bull market for stocks, JPMorgan Funds Vice President and Global Market Strategist Andres Garcia-Amaya said Tuesday.

"Correlation of the equity markets and 10-year yield is actually positive when it starts from very low levels, and that's basically where we are right now," he said.

On CNBC's "Fast Money," Garcia-Amaya said that higher U.S. Treasury yields would be a warning sign for equities.

"When it goes to around 4, 5 percent for the 10-year yield, it turns negative. Why? Usually, that means that inflation got away from the Fed. They have to raise interest rates much higher," he said. "That's bad for equities. We're nowhere near that."

Garcia-Amaya added that the Federal Reserve's monetary policy could help continue the stock market rally.

"So, if they do this the right way – and that's to be seen - equity markets could actually rally in the back of that," he said.

Garcia-Amaya acknowledged that the same thesis did not pan out over the past two years. But he also pointed out that the threat of contagion from Europe was not there, Japan was printing money, and U.S. employment and housing were improving.

"So the situation is a little bit different now," he said, adding that corporate earnings are supporting the rally.

"Just because it didn't work the last two years doesn't mean it's never going to work," he added.

Trader disclosure: On May 14, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long WMT; Josh Brown is long DDD; Josh Brown is long PFE; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long SPLK; Joe Terranova is long LNKD; Joe Terranova is long SWN; Joe Terranova is long TBT; Stephen Weiss is long BAC; Stephen Weiss is long C; Stephen Weiss is long SODA ; Stephen Weiss is long AAMRQ; Stephen Weiss is long LCC; Stephen Weiss is long UAL; Stephen Weiss is long BBRY; Stephen Weiss is long SODA ; Stephen Weiss is long AAPL; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long BAC; Anthony Scaramucci is long GS; Anthony Scaramucci is long YHOO; Anthony Scaramucci is long GOOG; Anthony Scaramucci is long WMT.