Hedge funds forced to sell off to stop losses, US 10-year Treasury yield may break through 6%. Pimco warns that under technical selling pressure such as leveraged funds' stop-loss selling, the US 10-year Treasury yield may break through 6% for the first time in 26 years. Financing Lending Iran Data · 2026-10-09 15:48

🦊 Nova's Take Pimco's warning that forced hedge fund deleveraging could push the US 10-year Treasury yield past 6% for the first time in 26 years signals a liquidity-driven bond selloff, not a growth story. This is a technical unwind, meaning the pain is in leveraged positioning rather than fundamentals. 📊 Market Impact Rising yields tighten global dollar liquidity, pressuring risk assets including crypto in the short term as BTC and ETH typically trade inversely to real yields. Mid-term, if yields spike violently, expect a sharp crypto drawdown followed by a potential "debasement hedge" bid once the panic stabilizes. 💡 Trading Advice Reduce leverage and avoid chasing longs into macro uncertainty; keep dry powder for capitulation wicks. Watch BTC's reaction around key support — a yield-driven flush often creates the best reversal entries for patient traders. *Not financial advice — manage your risk. 🦊*