- Pimco warns US benchmark borrowing costs risk hitting 6% for the first time in 26 years.
- Pimco cites high oil prices, inflation and US public debt as drivers of the bond market selloff risk.
- The Treasury sold $39B of 9-year, 10-month notes at a high yield of 5.3% in a 10-year auction that drew solid end-investor interest.
- Strong auction demand eased pressure across the yield curve as buyers absorbed supply with little dealer support.
Quotes
“fears over high oil prices, inflation and America’s towering public debt roil the world’s most important bond market”