Tag Archives: Bonds

Bond Yields Relative to Equity Indices

Bonds

One key metric I am watching is the extent to which US bond yields have risen relative to the S&P500 index. The chart shows the SP500 / 10-year yield ratio falling to its lowest level since March 2017: Here is what it means and imply: The sell-off in equity indices is surpassing the selloff in bonds (advance in bond yields), ...

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Stocks Threatened by Bonds

Stocks Threatened by Bonds

We could engage in a long fundamental discussions as to whether the 45% increase in US 10 year bond yields of the past five months to its highest level in four years (2.83%) will introduce a considerably higher risk premium to stocks valuation. Some could argue that depends on sectors, size of companies’ capitalisation, profitability and cash balances. Others will ...

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