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

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...