DJ Rising Treasury Yields Pose Risk to Investment Portfolios -- Market Talk

1142 GMT - Higher U.S. sovereign debt yields could lead investors to cut risk on fear of a premature tightening of financial conditions, Mark Dowding, chief investment officer at BlueBay Asset Management, says. "We...are wary that a move in U.S. yields beyond 1.25% in the coming week or two could lead investors to turn more defensive," he says. Running a portfolio which is long in risk assets and short in rates has some intrinsic appeal at the moment, though investors need to be cautious that an "exogenous risk-off event could see equity and bond yields recorrelate," he says. (lorena.ruibal@wsj.com)

(END) Dow Jones Newswires

February 05, 2021 06:42 ET (11:42 GMT)

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