New Delhi, Oct. 2 -- Wall Street veterans are picking up on some unusual developments in the economy as bond markets sell off and mortgage rates post their biggest one-week jump in four years.

Louis-Vincent Gave, head of Gavekal, said one odd situation playing out is that the U.S. dollar has weakened against most currencies, despite the rise in food and oil prices alongside yields.

Arthur Budaghyan, head of coreMacro at BCA Research, also touched on this dynamic, noting there had been relatively little volatility in the equity and currency markets despite the surge in bond volatility.

"This divergence is unsustainable and will likely end with greater volatility across most financial markets," he writes in a note to clients.

Budaghyan ...