5% Was The Warning. At 6%, It Gets Nasty

Stuck in a 5% world

The 5% Treasury world is starting to change the relative value equation.

BofA, bond bears since the ZIRP era, says the setup has finally become more interesting. The 10-year yield is now above the S&P 500 trailing earnings yield, while the gap versus the dividend yield is around 4 percentage points.