How do bond yields affect tech stocks?

Lower bond yields reduce borrowing costs and make growth stocks more attractive, prompting investors to shift from bonds to equities.

Is this rally sustainable?

It is uncertain; the sector remains in a broader downturn, and the rally may be temporary unless yields continue to fall.

PubMatic, Freshworks Lead Tech Rally as Treasury Yields Drop Below 4.5%

PubMatic and Freshworks led a tech rally after the 10-year Treasury yield dropped below 4.5%, easing valuation pressures on growth stocks.

June 25, 2026

2 min read

Source: StockStory

Key Numbers

treasury yield

below 4.5%

Shares of several technology companies, notably PubMatic and Freshworks, surged in afternoon trading after the 10-year U.S. Treasury yield fell below 4.5%, offering valuation relief amid a broader tech pullback.

Reasons for the Rally

The decline in the 10-year yield reduces borrowing costs and makes growth stocks more attractive. Lower yields often prompt investors to shift from bonds to equities, particularly in the rate-sensitive tech sector.

Sector Performance

Gains were not limited to PubMatic and Freshworks, as many other tech stocks also benefited from improved sentiment. However, the sector remains in a broader downturn, making this rally a potential temporary rebound.

What This Means for Investors

Investors should closely monitor Treasury yield movements, as they remain a key short-term driver for tech stocks. It is also important to evaluate each company's fundamentals before making investment decisions.

Frequently Asked Questions

The shares rose after the 10-year Treasury yield fell below 4.5%, providing valuation relief for tech stocks.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.