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Stocks Nervously Eyeing Soaring Bond Yields

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While this morning's explosion higher in Treasury bond yields (the largest in 9 months) was 'evidence' for many of the 'great rotation' as stocks rallied; it seems that now the 'crowd' is selling everything. Stocks, commodities, bonds, and credit are all offered (while the USD and precious metals are bid). The end of POMO appears to have stalled the exuberance and cracked the JPY collapse of the day (for now - since it is Tuesday). With the 10Y yield now well above the S&P 500 yield, we wonder what 'measure of cheapness' will be wheeled out next to justify buying stocks again.

 

 

S&P 500 futures have dropped back perfevtly to unch with the open and VWAP - nothing unusual there at all.

10Y yield is now well above the S&P 500's dividend yield...

 

Charts: Bloomberg


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