Bonds Are 'Cheapest' To Stocks In A Year As Cross-Asset-Class Correlation Collapses

By Tyler Durden of Zero Hedge
Monday, November 14, 2016 4:10 PM EDT

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...

(Click on image to enlarge)

20161114_yield.jpg (961×507)

And the last time the correlation between stocks and bonds collapsed from the craziness of the last month, the markets crashed... 

(Click on image to enlarge)

20161114_yield1.jpg (963×487)

Disclosure: None.

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Chee Hin Teh • 7 years ago • Member's comment

Thanks much Tyler