Many professional bond investors have fretted for several years about the possibility of a bout of inflation.

The government has injected a lot of money into the economy in the wake of the financial crisis. At some, point, they reasoned, all of that stimulus would gain traction and lead to higher prices and tighter monetary policy. This would be bad not only not only for bonds but for stocks as well.

But inflation has not appeared, at least not so far. Now, money managers have a new reason to worry about bonds – yet they can trumpet an opportunity in stocks.

They figure that investors will reallocate a portion of their portfolios away from bonds and into equities in response to a strengthening economy and ultra-low bond yields. This could be self-reinforcing, as eroding bond prices drive people more heavily into stocks.

In a call with clients this week, U.S. Trust officials predicted that this change in investor sentiment could drive the yield on 10-year Treasuries to 2.5 percent by the end of 2013 from about 1.9 percent, according to someone who was on the call. If this happens, I calculate that a newly issued 10-year Treasury bond would lose approximately 4 percent of its value (including interest payments).

Could these market watchers finally have it right? I don’t know. While interest rates will have to climb meaningfully at some point, the devil is in the timing. But for sure, Treasuries don’t look like the safe haven they are generally regarded.

This piece is informational only and not meant to be taken as investment advice. Consult with a qualified advisor before making an investment decision.