Falling yields lifted every sector, but the rally skipped rate-sensitive sectors and software
A broad relief day eased the pressure from short-term rates without reversing it, so holders of long-duration and fee-dependent businesses have not yet been let off the hook.
All 12 sectors rose, with only 1.78 points between the best and the worst. Materials led at 1.91% and Healthcare followed at 1.39%, while Treasury yields fell 5 to 7bp across the curve, including 6bp on the 2-year.
Since the last briefing
Yesterday we argued that rising short-term yields and Hormuz risk were pushing money into energy and AI hardware and away from software, and we leaned 60/40 toward a stagflation squeeze.
What drove the session and how it transmitted, the exposure table by persistence grade, where the committee disagreed, its verdict and weighting, and the falsifiers that would prove it wrong.