bond vs equity – reaching the tipping point

Posted: December 2, 2016 in Uncategorized

There is a point where the back up in yield start to hurt equities, as the premium shifts.

What is that level.

Societe Generale – on 10 years Treasury Bond vs SP 500 – says it is approximately

Yield level 2.6%

The 11/11/16 we were at US Treasuries 2.15%

The 28/11 it was 2.31%

The 1/12 it was 2.45%

The Fed will pay very attention to this also because the same data around the world went lower – so it is easy to see a further strengthening of the USD.

 

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