Bloomberg macro strategist Simon White warns that as US government bond yields continue to climb, their upward trajectory is becoming more disorderly, with term premiums starting to widen, potentially pushing financial markets to a critical tipping point. He noted that the 10-year US Treasury yield briefly touched 5.14%, a new high since 2007, and the 30-year yield rose to approximately 5.4%.

Market observers believe that if long-term interest rates continue to rise, the current equity valuation system, built on low financing costs, will face immense pressure. Analysis suggests that with US federal debt exceeding $40 trillion and margin leverage at historical highs, sustained pressure in the bond market could trigger a chain reaction through financing costs, asset valuations, and deleveraging.