Analysis shows that European interest rate risk has two dimensions.

Ashok Bhatia, chief investment officer and global head of fixed income at Loomis Sayles, said in a report that the risk of European interest rates is two-way, and this asymmetry should be reflected in prices. He said, "The rise in global government bond yields, driven by the reevaluation of central bank expectations, may also be influenced by central banks and institutions needing to raise cash due to higher oil prices." Bhatia said that even without traditional safe-haven buying, US Treasuries reflect a more clear and accommodative path by its central bank compared to its European counterparts.