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US 10-Year Treasury Yield Could Reach 6% Amid Inflation and Rising Debt
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Firstpost•09-10-2026, 12:30
US 10-Year Treasury Yield Could Reach 6% Amid Inflation and Rising Debt
- •Pimco CIO Dan Ivascyn warns that the US 10-year Treasury yield could surge to 6 percent for the first time since 2000.
- •Rising oil prices, persistent inflation concerns, and mounting government debt are fueling a major sell-off in global bond markets.
- •The benchmark yield was trading at around 5.29 percent, having climbed nearly 120 basis points this year.
- •Leveraged investors and hedge funds unwinding losing positions have exacerbated recent market movements through stop-loss activity.
- •A move to 5.5 percent or higher could trigger substantial weakness across riskier assets, including equities and corporate bonds.
Key Questions Answered
Pimco CIO Dan Ivascyn warned that rising oil prices, persistent inflation concerns, and mounting government debt are driving a global bond market sell-off that could push the US 10-year Treasury yield to 6% for the first time since 2000.
The benchmark US 10-year Treasury yield was trading at around 5.29 per cent on Friday, having climbed nearly 120 basis points this year to approach a recent peak of 5.34 per cent.
A move to 5.5 per cent or higher in Treasury yields would likely trigger substantial weakness across credit and equity markets by putting significant pressure on riskier assets and tightening global financial conditions.
