US 10-year Treasury yield risks hitting 6% for first time since 2000, Pimco’s Ivascyn tells FT

Dan Ivascyn, Chief Investment Officer at Pimco, stated to the Financial Times that the benchmark 10-year US Treasury yield could potentially reach 6% for the first time since 2000. This rise in yields is attributed to concerns over high oil prices fueling inflation and growing public debt in the United States. The 10-year yield has increased by nearly 120 basis points this year and is currently trading close to the 5.34% level, its highest since 2002.

Ivascyn believes a sharp increase from the current level of 5.29% is feasible in the near term, citing factors such as hedge funds exiting their losing bond positions. He noted that a potential rise in yields could negatively impact riskier assets like stocks and corporate bonds, leading to weakness in risk markets both in credit and equity.