Pimco warns: 10-year US Treasury yield may hit 6%, for the first time since 2000
PIMCO's Chief Investment Officer stated that due to high oil prices intensifying inflation concerns and market unease over the growing U.S. public debt, the benchmark 10-year U.S. Treasury yield could rise to 6% for the first time since 2000.
Jitong Finance APP reports that Dan Ivascyn, Chief Investment Officer of bond fund management company PIMCO, stated that due to high oil prices intensifying inflation concerns and market unease over the continually expanding US public debt, the benchmark 10-year US Treasury yield may rise to 6% for the first time since 2000.
The US Treasury yield is the benchmark for global borrowing costs and asset prices. The 10-year US Treasury yield has risen nearly 120 basis points this year, and is currently just below last week’s peak of 5.34%, which was the highest level since 2002.
Ivascyn said on Friday that a sharp rise from the current level of 5.29% is “feasible” in the short term, citing factors such as hedge funds closing out losing bond positions.
“From a short-term trading perspective, this is certainly possible, because some of the activities we have seen in recent weeks are related to negative technical factors, and to stop-loss exits by platform hedge funds and other leveraged investors. You could certainly reach that level,” he said.
He also said that if US Treasury yields rise further, it might drag down risk assets such as stocks and corporate bonds; if yields climb to 5.5% or higher, it could lead to “significant weakness in risk markets like credit and equities.”
Global bonds have come under heavy selling pressure this year, with soaring energy costs pushing up inflation and the AI boom boosting economic growth, prompting investors to position for higher rates to persist for a longer period. Bond yields move inversely to prices, rising when prices fall. Global bond yields have surged, and during the three months to September, the 10-year US Treasury yield recorded its largest quarterly increase this century.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
OpenAI revenue shrinks by 18 billions USD, triggering a plunge in chip stocks
OpenAI's annualized revenue has been revised to $50 billion, leading to declines in stock prices for Nvidia, AMD, and others. Market sentiment is divided: some warn of IPO risks and widening losses, while others are optimistic about the $4 trillion AI investment outlook.
Fast delivery in 4-6 weeks: Dell (DELL.US)’s premium confidence and the 2027 memory crisis
Goldman Sachs maintains a Buy rating on Dell, highlighting that its AI server deliveries are 4-6 weeks faster than industry peers, supporting its premium. The report warns of potential memory supply shortages in 2027 and emphasizes that storage attach rates and operational leverage are key to margin expansion, while enterprise AI adoption is still in its early stages.
Elon Musk says the 800MHz band trade is an earthquake, three major telecom stocks plummet after hours
Elon Musk announced that SpaceX has obtained the 800MHz frequency band, calling it an industry earthquake. This move caused the stocks of telecom giants such as AT&T and Verizon to plummet significantly after hours, while SpaceX’s share price rose against the trend. The market is concerned that satellite mobile communications will disrupt the traditional landscape.
BUZZ - Shares of Oxford Metrics in the UK fell as the company forecast a fiscal year loss, while the market had previously generally expected the company to turn a profit.
On October 9th, shares of smart sensing technology company Oxford Metrics OMG1.L fell by 14% to 30 pence, marking their lowest level since March 2015. The company expects an adjusted operating loss of between £500,000 and £3.9 million for fiscal 2026, while the market consensus was for a profit of £3 million. Oxford Metrics noted that key markets served by its motion capture division, Vicon, remain soft, with R&D funding under pressure and major projects in the industrial vision and measurement systems business facing delays. The company has acquired the assets of Move AI to enhance Vicon’s AI-based motion capture technology and reach more customers and markets. Year-to-date, the share price has dropped about 45%, including the decline on the day. (For the convenience of non-English speakers, Reuters has automated translation of its reports into various other languages. As automated translation may be inaccurate or lack necessary context, Reuters does not guarantee the accuracy of the translated text and provides it as a convenience only. Reuters is not responsible for any damage or loss caused by the use of automated translation features.)
Crypto prices
More
