The United States 10-year Treasury yield - a longer maturity bond yield - hit a 15-year high of 4.34 per cent in August, altering how a fund manager feels about fixed income.
“The market is starting to worry whether it is truly as risk-free as we’ve all assumed for all these decades,” Salt Funds head of global diversified funds Greg Fleming told Markets with Madison.
Bonds are typically an asset held in more conservative investment portfolios. As the price of bonds fell, the yield increased. The 10-year yield was sitting closer to 4.1 per cent on Friday morning.
Fleming said investors should reassess their appetite for risk as a result of the yield rally.
