Warning of new financial crisis as bond yields spike

Swiss-based BIS said losses on US treasuries will reach $1trn if average yields rise by 300 basis points, reports the Telegraph. It warned losses could range from 15% to 35% of GDP in the UK, France, Italy and Japan and even greater damage in a number of other countries. "Such a big upward move can happen relatively fast," BIS said, referencing the 1994 crash. "Someone must ultimately hold the interest rate risk. As foreign and domestic banks would be among those experiencing the losses, interest rate increases pose risks to the stability of the financial system if not executed wit...