Rising Long-Term Treasury Yields Intensify Competition for Capital

Swissquote Bank senior analyst Ipek Ozkardeskaya stated that rising long-term bond yields are increasing competition for capital, prompting investors to shift toward safer assets like U.S. Treasuries. With an initial yield of approximately 5.3%, the potential return profile is asymmetric; a 100-basis-point rise in yields would result in a total loss of about 1.5%, while a 100-basis-point decline could yield returns near 13% when including coupon income.