Swissquote Bank analysts say a 100-basis-point rise in U.S. Treasury yields leads to an overall loss of about 1.5%.

Senior analyst at Swissquote Bank, Ipek Ozkardeskaya, stated that rising long-term bond yields are intensifying competition for capital. At current yield levels, some investors tend to shift towards safer investments by purchasing U.S. Treasuries. She pointed out that with an initial yield of around 5.3%, the potential return over the next year is asymmetric. Before yields rise to approximately 6.1%, coupon income can cushion losses. If yields rise by 100 basis points, the total loss will be about 1.5%; whereas if yields fall by 100 basis points, the return including coupon income could approach 13%.