Rising U.S. Treasury Yields Intensify Competition for Funds

Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, stated that the rise in long-term bond yields is intensifying competition for funds, leading some investors to shift towards safer investments by purchasing U.S. Treasuries. With an initial yield of about 5.3%, the potential returns over the next year exhibit asymmetric characteristics. Before yields rise to around 6.1%, coupon income can buffer losses. If yields increase by 100 basis points, the total loss will be approximately 1.5%; whereas if yields decrease by 100 basis points, the total return, including coupon income, could approach 13%.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.