Swissquote senior analyst Ipek Ozkardeskaia said rising long-term bond yields
are increasing competition for funds. At current yield levels some investors are
shifting into safer assets, buying US Treasuries. From a roughly 5.3% starting
yield, one-year outcomes are asymmetric: coupon income would offset
mark-to-market losses until yields reach about 6.1%. A 100bp rise in yields
would imply a total loss of about 1.5%; a 100bp fall, including coupon income,
could produce returns near 13%.