45 days ago • Posted by Martin Boujol

The gap between US interest rates and equity dividend yield is gone

The sharp sell-off in US bonds we've seen recently has made them very affordable, but that's still not enough to attract equity investors. People are still afraid that a coming inflation could endanger bonds, as fixed interest payment, by definition, are worth less if inflation arrives. Today, US 10-year yields are above 1.5% for the first time in a year, catching up the gap they had with the dividend yield of S&P 500 stocks.

Source: FT

#Bonds
The gap between US interest rates and equity dividend yield is gone
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