Input 2021.03.19 06:42
The market watched the trend of US Treasury yields. As the Federal Reserve (Fed and Fed) reaffirmed its long-term low interest rate policy the previous day, the rise in interest rates, which seemed to be stable, sharpened again in one day.
The 10-year U.S. Treasury bond rate soared, surpassing 1.75% at the beginning of the market. Even at the close of the stock market, it surpassed 1.7%. The 30-year Treasury bond yield has also surpassed 2.5%, rising to the highest level since 2019, and the long-term interest rate is on a sharp rise.
Despite the Fed’s repeated easing remarks, the market concerns over inflation have not been resolved. “The risk of interest rates rising too quickly remains a major concern,” said Craig Johnson, technology market strategist at investment bank Piper Jaffrey.
As interest rates jumped sharply, stock market anxiety also intensified, centered on technology stocks. The rise in interest rates is a factor that increases the valuation burden of overvalued technology stocks. Apple’s share price fell by about 3.4% on the day, and Tesla fell close to 7%.