Why the market has been plunging?United States 10 Year Government Bonds YieldTVC:US10YSonicDeejay"Why the market has been plunging: surging bond yields are tightening the screws" One of the key drivers behind the market sell-off over the past two weeks has been the sharp rise in bond yields. The 10-year Treasury yield has climbed roughly 50 basis points in just one month, moving from around 3.9–4.0% to 4.4–4.5%. To put that in perspective, a 50 bps move is functionally equivalent to the Fed having already conducted two rate hikes — except this time, the tightening is happening through the bond market itself, without any FOMC action. This matters for two reasons. First, higher yields raise the discount rate applied to future earnings, which directly compresses stock valuations — particularly for growth and tech names that are sensitive to rate expectations. Second, and perhaps more critically, rising yields are putting increasing pressure on the US government's fiscal position. With decades of accumulated debt now needing to be refinanced at higher rates, the cost of servicing that debt is ballooning. The ongoing tariff uncertainty and geopolitical tensions are only making the situation harder to manage. In short, the bond market is doing the Fed's job for it — and equities are paying the price.