Rising yields fracture the tape: optical and energy hold while defensives break.
A sharp single-session yield reversal — with the 10-year reclaiming 4.05% — is doing the work that geopolitical headlines cannot: forcing a systematic repricing of duration-sensitive equities while rewarding names whose cash flows are near-term and commodity-linked.
Energy led the five sectors that closed higher, with VG, COHR, CRCL, LITE, and TSEM each gaining more than 11%, while AES, EL, ELV, and Consumer Staples bore the heaviest losses in a session where only five of twelve sectors advanced.
Since the last briefing
Friday's position held that quality cash-generating businesses and confirmed defensives should be held, while AI infrastructure, Financials, and high-multiple growth names should not be added to until Treasury yield direction resolved over two to three
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.