That has pushed 10-year bond yields across the euro area to levels last seen during the bloc's 2011-2012 debt crisis , .
"Equity markets appear expensive when considering the possibility of prolonged higher rates."
Patrick Saner, head of macro strategy at Swiss Re, added that rising government bond yields also made risk assets relatively less attractive.
And while government bonds were seen vulnerable to further selling, higher yields are still viewed as a buying opportunity.
"In sovereign markets now, 10-year German bond yields are north of 2.70%.