Lates News

Pacific Investment Management Company (Pimco) has warned that, amid high oil prices, inflation concerns and massive US public debt, the world's most important bond market remains volatile, and the US 10-year Treasury yield faces the risk of hitting 6% for the first time since 2000. Pimco Chief Investment Officer Dan Ivascyn said that after weeks of heavy selling in the $32 trillion US Treasury market, investors such as hedge funds may be forced to close out loss-making bond positions, making a further sharp rise in the 10-year US Treasury yield from its current 5.29% a "plausible scenario." In recent weeks, other investors have also issued similar warnings: the US Treasury market is forming a "vicious cycle." Waves of selling push yields to certain levels, which in turn prompts other market participants such as real estate investment trusts (REITs) to also start selling bonds.