The "monster" being released on the financial market right now is the US bond yield, which is specifically its 10-year bond yield. Yesterday this yield increased by 10%, sometimes up to 1.56%.

You also know that the "string" that connects the financial markets together is the interest rate. So when the bond yield increases, the US stock market crashes, and the USD rises.

There is an article that can help clarify the bond yield problem posted on the fb of Mr. Ho Quoc Tuan, please quote below for you to read for more clarity.

Since the beginning of 2021, the US 10-year bond yields have been steadily rising with an increasingly steep slope. This yield until February 19 has exceeded 1.3% and is on the way to 1.5%.

Many people predict that this year this yield will return to the 1.8% mark before the Covid-19 epidemic took place. This raises concerns in the market that interest rates in the economy will gradually increase again and the US Federal Reserve (Fed) will not continue to pump strong liquidity to support the economy anymore.

Why so? First, the 10-year US bond yield is one of the interest rates that banks and financial companies refer to to offer interest rates on loans, including home purchases. This is also the reference interest rate for some margin loans of the financial market.

Yields on 10-year US bonds increased sharply yesterday and have been increasing over the past time (this is a supplement to the article, not the original article)​.

In a nutshell, when this interest rate increases, especially rapidly, interest rates on home purchases and margin loans will also be adjusted quickly. This creates pressure to adjust the portfolio of some funds. Because when the cost of margin borrowing increases rapidly, the stock portfolio is at risk, especially if it is financed with large debt.

In addition, the increase in bond yields also puts pressure on portfolio restructuring towards increasing the proportion of bonds and reducing the proportion of stocks. Many U.S. stocks that are low-volatility, but high-dividend-paying, benefit when the 10-year yield is just 0.6% and the dividend yield is above 1.5%.

At the time of the third quarter of last year, many investment funds had to "bite their teeth" to change their investment principles and increase the proportion of stocks because bonds generated too low yields. Now that bonds have a yield of 1.5%, the pressure to buy riskier stocks to enjoy high dividends has disappeared, some funds will return to buy bonds.

The most important element of this rally in bond yields is sentiment. Investors who have bought into winning stocks have continuously won since March 2020 with the slogan "too much money, too low interest rates, what to do if you don't buy stocks". Now that slogan has lost its effectiveness as bond yields have rebounded, especially faster than anticipated.