Treasury Counselor David Zervos: Energy shock, not sticky inflation, driving yields

Markets are digesting a clear fed tight odds catalyst titled "Treasury Counselor David Zervos: Energy shock, not sticky inflation, driving yields". Counselor to the Treasury Secretary David Zervos joins Closing Bell Overtime to talk recent inflation and yield moves, as well as the impact of the energy shock due to the ongoing conflict in the Middle East.

Tighter-policy odds raise discount rates and compress multiples, especially in long-duration equities. High-duration tech and speculative growth usually take the first hit, while value and some financials can hold up better if the curve steepens for the right reasons. Hawkish surprises hit through yields first. Watch whether the 10Y confirms the narrative before assuming index damage is done. What happens next is whether markets validate auction demand and the next inflation print.