May 12 News Express

The wave of US Treasury sell-offs continues to spread, with the 30-year yield reaching a 24-year high of 5.621% and the 10-year yield rising to its highest level since 2002—oil price declines and dovish signals have both failed, and long-term rates remain unaffected. High yields are reshaping the structure of US equities; as the AI narrative becomes the market’s final pillar, any cracks could trigger a chain reaction of turbulence.

The supporting logic encompasses five major pillars: unexpected macro trends, consumer resilience, low profit expectations, stabilized yields, and technical improvements. Since the previous shift on August 31, the Nasdaq 100 long and Russell 2000 short paired trades have accumulated gains of over 8%. This latest "bullish reversal" is even more convincing. Strategically, technology remains the core long position, but the hedging tool has shifted from shorting RTY to derivatives. Meanwhile, the risk of long-term interest rate hikes still persists.