Analysis: Long-term rise in U.S. Treasury yields may intensify competition for capital

PANews reported on October 1 that Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said rising long-term bond yields are intensifying competition for capital. At current yield levels, some investors tend to shift toward safer investments and buy U.S. Treasuries.

Ipek Ozkardeskaya pointed out that, based on a starting yield of about 5.3%, the potential return over the next year shows asymmetric characteristics. Before the yield rises to about 6.1%, coupon income can cushion losses. If the yield rises by 100 basis points, the total loss will be about 1.5%; while if the yield falls by 100 basis points, the return including coupon income could be close to 13%.