PIMCO CIO warns Treasury yields could reach 6%

The U.S. 10-year Treasury yield could approach 6%—a level not seen since 2000—as high oil prices, inflation concerns and rising public debt pressure bond markets. PIMCO Chief Investment Officer Dan Ivascyn also pointed to technical selling, including hedge funds unwinding losing positions, as a source of near-term volatility. He warned that yields reaching 5.5% or higher could weigh on stocks and corporate bonds; persistently high borrowing costs could also raise financing costs for governments, businesses and households.