Yields retreat, breadth widens, but AI euphoria meets internal caution.
A broad equity rally funded by a significant Treasury rally gives quality-compounder holders a better tape than yesterday, but the session's loudest story — NVDA — carries a platform warning the committee could not dismiss.
A broad risk-on session lifted 9 of 12 sectors, led by Industrials and Materials, while a sharp 10-basis-point rally across the 5-to-10-year Treasury curve signalled a meaningful easing of the bond-vigilante pressure that defined the prior session.
Since the last briefing
Yesterday's position held that bond vigilantes were repricing duration and that the 30-year at 5.18% was a structural multiple-compression event favouring cash-generative businesses over high-multiple growth, with the committee explicitly declining to add to
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.