REUTERS/Brendan McDermid
- Investors aren't paying enough attention to the risk of quantitative easing, Art Cashin told CNBC.
- While markets are focused on benchmark rates, the Fed has been slowly shrinking its balance sheet.
- Meanwhile, the Bank of Japan could signal a big shift soon that would also send yields higher.
Wall Street legend Art Cashin is cautioning markets to keep a close eye on the the Federal Reserve's quantitative tightening and a possible reversal from the Bank of Japan.
With Japan's central bank due to meet in the coming week, a shift toward a more hawkish stance would add upward pressure on bond yields, hitting stocks in the process.