Yield surge flattens the growth tape and bids up energy and nothing else.
When the 2-year and 5-year each climb 12 basis points in a single session, the question is not whether growth equities reprice but how far down the quality stack the selling goes.
A sharp yield spike — the 2-year rose 12 basis points to 3.96% and the 5-year 12 basis points to 4.08% — drove a brutal rotation out of Technology, which fell 3.23% on the session and is now down 4.20% over five sessions, punishing optical networking, AI-adjacent hardware, and storage names hardest.
Since the last briefing
Yesterday the committee held a Cyclical Recovery view narrowed to confirmed hardware infrastructure names within the AI buildout, while treating rising rates as a durable headwind to software and rate-sensitive sectors.
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.