US 10-year Treasury yield risks hitting 6% for first time since 2000: Pimco
Global bonds have come under heavy selling pressure this year as soaring energy costs fan inflation
As soaring energy costs fuel inflation and concerns over the country's growing public debt mount, Pimco's chief investment officer Dan Ivascyn warned that the benchmark 10-year US Treasury yield could climb to 6% for the first time since 2000. Ivascyn highlighted the impact of high oil prices on inflation worries and the potential for a sharp rise in yields, which have increased by nearly 120 basis points this year.
The 10-year yield currently trades slightly below 5.34%, its highest level since 2002. Ivascyn suggested that the yield could reach 6% in the near term, citing factors such as hedge funds exiting losing positions and negative technical indicators. A significant increase in yields could negatively affect riskier assets like stocks and corporate bonds, potentially leading to a decline in risk markets.
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Also reported by 4 other outlets
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