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

Business Recorder, citing the Financial Times, reported that Dan Ivascyn, chief investment officer at Pimco, said the 10-year US Treasury yield could climb to 6%, a level last seen in 2000. He pointed to high oil prices feeding inflation worries and concern about the country's expanding public debt. The yield acts as a benchmark for loan costs and valuations worldwide.

The yield has climbed nearly 120 basis points so far this year and stands at 5.29%, just under last week's 5.34% peak, which was its highest since 2002. Ivascyn said a sharp rise in the near term was feasible, citing hedge funds closing out loss-making bond trades. He warned that reaching 5.5% or above would likely produce a notable drop in riskier assets such as equities and corporate debt.

Global bond markets have sold off heavily this year, as energy costs push inflation up and AI-driven expansion strengthens growth, leaving investors preparing for a long period of elevated rates. Because yields rise as bond prices fall, they have surged worldwide. The 10-year US yield logged its steepest quarterly gain of the century in the period to September.