Pimco: US 10-year yields could hit 6%, a first since 2000 (opens the source in a new tab)
- Pimco investment chief Dan Ivascyn says a further jump in the 10-year Bond yield The annual return a bond pays at today's price; rising yields mean borrowing is getting dearer., now 5.29%, is ‘feasible’ as hedge funds and other leveraged investors unwind losing bets.
- Investors fear inflation from the Iran war, heavy borrowing by AI companies and America’s towering debt; the 30-year US mortgage rate reached 7.4% on 8 October, its highest since 2023.
- Above 5.5%, he expects ‘decent weakness’ in stocks and credit; the lowest-rated companies already pay 17% to borrow, the most since May 2020.
- 5.29%
- US 10-year yield now
- 6%
- possible, says Pimco
- 7.4%
- 30-year US mortgage
Why it matters Treasury yields set the price of mortgages, company loans and share valuations worldwide, so a move to 6% would reach far beyond Wall Street.
Other side Ivascyn also says high yields will lure buyers back into Treasuries, limiting how far they climb, and this week’s 10- and 30-year auctions drew robust demand.