The rise in U.S. Treasury yields puts discount rate pressure on high-valuation tech stocks and growth assets.

On July 20, the 10-year U.S. Treasury yield rose to around 4.60%, while the 20-year yield broke above 5.1%. The market is once again trading on long-term inflation and term premium pressures. Energy prices have gained a risk premium due to escalating U.S.-Iran tensions and restricted transportation through the Strait of Hormuz, intensifying concerns over a second wave of inflation. Major corporations have concentrated on issuing long-term bonds, pushing up long-term yields. The 10-year U.S. Treasury yield approaching 4.6% puts discount rate pressure on highly valued tech stocks and growth assets.