As yields rose from just under 4% Tuesday morning, the stock market rally lost some steam.
That should help stocks rally into year end, but he expects the yield to rise again next year, challenging the market.
But he is encouraged by the strength of the rally and says there's a chance this could be the start of a new bull market.
"You could always side conservatively and assume it's a bear market rally," he said.
But he is also watching the market day-to-day, and expects it is in a bear market rally, rather than a new bull trend.