"U.S. 10-year Treasury yield could reach 6%"

[Financial News] A warning has emerged that rising oil prices, inflation, and massive government debt could put the U.S. 10-year Treasury yield at risk of reaching 6% for the first time since 2000.
On the 11th (local time), PIMCO Chief Investment Officer (CIO) Daniel Ivascyn told the UK's Financial Times (FT), "The impact of a fierce bond sell-off over several weeks has left investors such as hedge funds having to cut their losses on bond investments that are in the red," adding, "The U.S. 10-year Treasury yield, currently around 5.26%, could rise sharply further."
He explained, "From a short-term trading perspective, it is certainly possible for that to happen. Some of the moves we've seen in recent weeks are linked to negative technical factors and stop-loss selling by platform hedge funds and other leveraged investors. It really could reach that level (6%)."
He expressed concern that "a sharp rise in Treasury yields could increase the mortgage burden on U.S. households and deal a serious blow to risk assets across the board, including stocks." He said, "If the U.S. 10-year Treasury yield tops 5.5%, risk-asset markets, including credit and stock markets, will weaken considerably," and noted that "yields on bonds issued by the lowest-rated companies have surged to as high as 17% this month, their highest level since May 2020."
He said, "If yields rise above a certain level, investors looking to lock in high rates will eventually return to buying Treasuries, helping to limit how high yields can go," and suggested diversifying into overseas bond markets such as Australia, the UK, Canada, and Germany rather than sticking exclusively to U.S. Treasuries.
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