Morgan Stanley's caution on rising yields derailing equity gains captures only surface mechanics, yet primary Federal Reserve documents from recent FOMC minutes reveal how sustained inflation from geopolitical trade frictions—particularly US-China semiconductor restrictions—continues to anchor higher term premiums. This dynamic, echoed in Treasury yield curve data releases, suggests the bond rout stems less from isolated AI exuberance and more from policy divergence where the ECB and Fed balance divergent growth paths amid energy security concerns. Secondary analyses from the BIS Quarterly Review further highlight how similar 2022-2023 yield spikes correlated with equity rotations rather than outright collapses, a pattern mainstream coverage underplays by focusing solely on risk-asset correlations. Multiple perspectives emerge: equity bulls cite resilient corporate earnings under AI capex, while policy analysts point to potential fiscal tightening signals in congressional budget outlooks that could exacerbate duration risks for leveraged portfolios.