Bond selloff is opening up rare opportunities for investors. Here is where to look, says major bank.

The recent bond selloff has pushed yields higher across maturities, a move Standard Chartered's chief investment office attributes in part to bond and money markets pricing in a more hawkish Federal Reserve path than the bank believes is warranted. If market expectations for rate policy prove too aggressive, current yield levels could offer more compensation than usual for taking duration risk.

The relevance for investors lies in that gap between market pricing and the bank's view. When rate expectations diverge, bond prices can adjust sharply in either direction, making the outlook for policy — not just the level of yields — the key variable to monitor.

What to watch: upcoming inflation and labor data, Fed communications, and how futures markets revise their rate-path expectations. None of this guarantees that bonds will rally; if inflation stays firm, yields could rise further. The observation is simply that a selloff of this scale has historically drawn attention from long-term buyers, and the debate now centers on whether markets have moved too far.