In case you didn’t know it, bond yields are headed up.

The benchmark 10-year Treasury yield last month broke through levels reached in 2013 during the so-called taper tantrum, and have done so again this month -- a technically significant breakout, said Jeffrey Sherman, deputy chief investment officer at DoubleLine Capital.

“The bond market doesn’t want to rally in a crisis” like the current equity market sell-off,  he told advisors Tuesday at the Inside Fixed Income conference in Newport Beach, Calif. “That tells you it wants to go the other direction. … Don’t fight it. Don’t fight the tape.”

The upward trend in rates doesn’t mean bonds won’t rally at some point. The Treasury market is “extremely short” right now, Sherman said. “That’s usually contrarian. At some point [the shorts] have to cover.” In the meantime, though, short sellers of long Treasurys can finance their positions by investing short-sale proceeds in two-year bonds that pay nearly the same rates.

Market fluctuations aside, rates are going up. With inflation and employment targets on track, the Federal Reserve will continue on its path of tightening, Sherman said.

CPI measures are all running from 2 percent to 2.75 percent, he said, meeting objectives. And labor market data all indicate a tighter job market.

“If we’re going to get [inflationary] wage pressure, now’s the time,” he said, noting that average hourly earnings growth recently hit three percent, “the first time in long time.”

Sherman told advisors to steer clear of corporate debt, which is still “super expensive.”

Emerging markets look fairly valued, he said, so “if you want to take risk, that’s not a bad place” given that emerging market bonds are comparable to U.S. high yield but with better credit quality.

Doubleline prefers dollar-denominated bonds, however Sherman said the U.S. dollar’s run-up, and the “massive” interest-rate differential that is driving it, probably won’t continue.