Pimco warns US 10-year treasury yield could hit 6 percent

Dan Ivascyn, chief investment officer at bond fund manager Pimco, has warned that the yield on the 10-year US Treasury bond could reach 6 percent for the first time since 2000. Speaking to the Financial Times, Ivascyn highlighted that surging oil prices, persistent inflation concerns, and rising US national debt levels are significantly pressuring the bond market.

Throughout 2026, the 10-year yield has risen by nearly 120 basis points. While it currently trades at 5.29 percent, it briefly touched 5.34 percent last week, marking the highest level seen since 2002. Ivascyn indicated that a sharp upward move remains feasible in the short term, driven by forced liquidations of losing positions by hedge funds and other leveraged investors.

As US Treasury yields serve as a global benchmark for borrowing costs and asset pricing, any further increase is expected to have widespread financial implications beyond American borders. The current market volatility reflects deep-seated anxieties regarding the broader fiscal outlook of the United States and global macroeconomic stability.