Inflation, whipped up by the supply chain crisis, will push bond yields higher over the next several weeks, according to Wells Fargo Securities' Michael Schumacher.
The firm's head of macro strategy believes the benchmark 10-year Treasury Note yield could reach 1.9% before year-end — a 23% jump from Wednesday's close.
"Number one is inflation. It's everywhere," he told CNBC's "Trading Nation" on Wednesday.
Schumacher also sees anticipation surrounding how the Federal Reserve will react as an upward driver for yields. He notes a few central banks, including Norway and New Zealand, have already adjusted their policy rates.
"The Fed is probably going to taper [and] announce it next month," he said. "It's going to push yields up in our view. It will go up a bit more, and then probably drop in December."