The 10-year Treasury yield may dip below 2 percent this month for the first time since October, as pension fund managers are forced to buy government bonds, says BlackRock CEO Larry Fink.

The yield stood at 2.3 percent Wednesday morning. It fell to 1.8 percent Oct. 15, when the S&P 500 index completed its 10 percent drop from Sept. 19.

Insurance companies need Treasurys to generate the income they pay out to claim holders. "Most insurance companies were predicting higher rates," Fink told CNBC. "They had a portfolio that was short their liability. I believe the gap has widened."

So the insurers must buy Treasurys, Fink explained. "There's a higher probability of interest rates going down in the short run."

To be sure, "I don't believe they'll stay down that low for the long term," he noted. For the most part, the 10-year yield will stay between 2 and 2.5 percent until global growth picks up, Fink predicted.

"There's a high probability that bonds are going to stay in a very narrow range for some time until we start seeing some real growth that will force behaviors of different central bankers."

Stocks are likely to keep rising amid lower oil prices, Fink said.

Meanwhile, John Canavan, a market analyst at Stone and McCarthy Research Associates, sees a mild rise in yields, with the 10-year Treasury trading between 2.25 percent and 2.5 percent until year-end.

While last week's bond rally was "overdone, . . . it is hard to argue for yields to rise much at the moment with little inflation pressure and continued weaker growth overseas," he told The Wall Street Journal.

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