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Pimco warns that the US 10-year Treasury yield may reach 6% for the first time since 2000

Pimco warns that the US 10-year Treasury yield may reach 6% for the first time since 2000

智通财经智通财经2026/10/09 04:31
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Pacific Investment Management Company (Pimco) has issued a warning that the world’s most important bond market remains volatile due to high oil prices, inflation concerns, and the US’s massive public debt. The yield on the US 10-year Treasury is at risk of reaching 6% for the first time since 2000. Pimco's Chief Investment Officer, Dan Ivascyn, stated that after several weeks of heavy sell-offs in the $32 trillion US Treasury market, investors such as hedge funds may be forced to close losing bond positions, making a significant further rise in the 10-year Treasury yield from its current level of 5.29% a “possible scenario.” In recent weeks, other investors have issued similar warnings: a “vicious cycle” is forming in the US Treasury market. Successive waves of sell-offs are pushing yields to certain levels, which in turn is prompting other market participants like Real Estate Investment Trusts (REITs) to also sell off bonds.

Pacific Investment Management Company (Pimco) has issued a warning that, due to high oil prices, inflation concerns, and the United States’ massive public debt, the world’s most important bond market remains volatile, with the yield on the US 10-year Treasury facing the risk of reaching 6% for the first time since 2000. Pimco’s Chief Investment Officer Dan Ivascyn stated that after several weeks of sharp sell-offs in the US Treasury market, which is valued at $32 trillion, investors such as hedge funds may be forced to close out loss-making bond positions. This makes a further significant increase in the 10-year US Treasury yield from the current 5.29% a “possible scenario.” In recent weeks, other investors have issued similar warnings: the US Treasury market is entering a “vicious cycle.” Waves of sell-offs have pushed yields to certain levels, which in turn prompt other market participants, such as real estate investment trusts (REITs), to also sell bonds.
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