Art Cashin says rising bond yields are holding back stocks.
Cashin, the UBS Director of Floor Operations at the NYSE, told CNBC's Bob Pisani that Tuesday morning's rally attempt was "undercut" when the yield on the U.S. 10-year note topped 2.7 percent.
"We're watching that bond market very closely and rather anxiously."
Speaking at midday, Cashin said traders are "fatalistic" about rising rates, and expect the Federal Reserve will start cutting back its asset purchases when it meets next month.
