Markets are closely following 10-year Treasurys and if the key U.S. government bonds reach a certain yield it could be a "trip wire" for markets, with the potential to blunt buying in equities, said Art Cashin, director of floor operations at UBS Financial Services.
"Traders are concerned that the area between 2.95 and 3 percent might be a trip wire. It used to be closer to 2.91, but we're inching up and I think we're very close to it. If it hits, it'd be interesting to see if it causes the bids to disappear in equity," Cashin told "Squawk on the Street" Thursday.
The yield on the 10-year briefly topped 3 percent late Thursday. (Click here to see where the 10-year Treasury is trading now)