Referring to the reason for the previous rise in US bond yields, Guohai Franklin Fund said that what directly triggered the market adjustment was the rapid rise in long-term US bond yields. The reason for this is mainly due to the US fiscal deficit, the increase in debt between the government and tech giants, compounded by high oil prices leading to concerns about inflation caused by changes in the situation in the Middle East, and the market once again lowered expectations for future easing of the Federal Reserve's monetary policy. The rise in US bond yields was also rapidly transmitted to the equity market. Guohai Franklin Fund pointed out that an increase in long-term risk-free interest rates will cause the discounted value of forward cash flows to decline. Therefore, growth stocks are highly sensitive to rising interest rates, and the high-valuation sector is the first to experience capital profit settlement. If US bond yields continue to rise, the overvalued sector will still be under pressure; conversely, growth stocks are expected to recover as yields fall back.

Referring to the reason for the previous rise in US bond yields, Guohai Franklin Fund said that what directly triggered the market adjustment was the rapid rise in long-term US bond yields. The reason for this is mainly due to the US fiscal deficit, the increase in debt between the government and tech giants, compounded by high oil prices leading to concerns about inflation caused by changes in the situation in the Middle East, and the market once again lowered expectations for future easing of the Federal Reserve's monetary policy. The rise in US bond yields was also rapidly transmitted to the equity market. Guohai Franklin Fund pointed out that an increase in long-term risk-free interest rates will cause the discounted value of forward cash flows to decline. Therefore, growth stocks are highly sensitive to rising interest rates, and the high-valuation sector is the first to experience capital profit settlement. If US bond yields continue to rise, the overvalued sector will still be under pressure; conversely, growth stocks are expected to recover as yields fall back.