BlockBeats news, September 29 — Bank of America strategist Michael Hartnett issued a fresh warning that violent swings in the U.S. Treasury market are becoming a new source of pressure on risk assets. The MOVE index he monitors jumped about 35% over two trading sessions, reflecting greater volatility in a financing system that uses Treasuries as its core collateral. Hartnett cautioned that if the Global Financials ETF (IXG) falls below $125 while the MOVE index remains above 125, the market could enter a broader "risk-off deleveraging."This would subject AI trades to a more severe test from interest rates. For some time, the earnings resilience of tech giants and AI capital spending have supported U.S. equities, but persistently rising long-end rates would simultaneously push up financing costs and valuation discount rates. The 10-year Treasury yield briefly rose above 5.2% last week, its highest level since 2007; a prior Bank of America survey of fund managers also showed that "disorderly rises in bond yields" has surpassed the AI bubble to become the market's most-feared tail risk.Hartnett's core judgment is that rising yields alone do not necessarily end risk appetite; the truly dangerous combination is high yields and weakening financial stocks appearing at the same time. That would mean rates have shifted from a signal of economic expansion into a source of tightening liquidity and credit conditions; leveraged funds would be forced to cut positions, and the pressure could then transmit from bonds to tech stocks, bank stocks and other highly valued assets.For AI bulls, the key things to watch next are whether bond volatility can subside, whether bank stocks can stabilize, and whether long-end yields show signs of peaking. Bank of America still believes yields are the main potential threat to the current economic and stock market expansion; once rate pressure eases, large-cap tech stocks could still regain favor with investors.