5% on the 30-year raises the risk-free rate, which changes the equity discount rate. a 40x stock looks very different at 5% vs 2%. growth stocks re-rate when yields move
Well, yes, but that's another way of saying the same thing. If the US can't pay and is forced to devalue their currency, thus tanking the value of your investment, you lose money. Therefore, the likelihood of this drives interest rates up.