The last time bonds were this ‘cheap’ to stocks, 10Y yields collapsed 45bps and the S&P plunged 13% (before a panicced wave of coordinated central bank buying saved the world)…
The yield on the 10Y US Treasury note is now 12bps ‘cheap’ to the dividend yield from the S&P 500 – the highest since Dec 2015…
And the last time the correlation between stocks and bonds collapsed from the craziness of the last month, the markets crashed…
via http://ift.tt/2eTQ7PT Tyler Durden