The fork: which way the 10-year yield moves next
Yield easing transmits into a selective equity bid Long-end yields pulling back lowers the discount rate on equity cash flows, relieving small caps and value while growth and mega-cap fail to confirm: a narrow rotation, not a broad re-rating. The 10-year yield path decides whether the bid broadens or the relief unwinds, with small caps giving back first on a re-acceleration. Long-end yields pull back Discount rate equity cash flows drop Small caps & value relieved · rebounds Growth / mega-cap fails to confirm Narrow rotation not a broad re-rating 52-wk high zone re-acceleration level extends lower 10Y extends lower bid broadens risk-on holds 10Y re-accelerates relief unwinds small caps give back