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It looks like Treasury yields finally got high enough to trigger a big rotation out of stocks...

It looks like Treasury yields finally got high enough to trigger a big rotation out of stocks and into fixed-income. Something seemed to snap when the 10-year rose to 2.20% this afternoon - the resulting action saw money pour out of equities (SPY -1.4%) and into Treasurys (TLT -0.3%), with the 10-year yield falling back to close at 2.14%.
Comments (9)
  • GizmoA51
    , contributor
    Comments (116) | Send Message
     
    Well, guess I will just have to try both.
    31 May 2013, 04:36 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    No 'forced rotation' yet...the futures didn't rebound that sharply off the lows. Equities sold off with Treasurys - this is a transient condition and it is not clear what the trend is from here (yet). Sunday night futures will start to price in the moves.
    31 May 2013, 05:41 PM Reply Like
  • TAS
    , contributor
    Comments (1983) | Send Message
     
    We are living in interesting times, once again.
    1 Jun 2013, 12:05 AM Reply Like
  • RAVEN
    , contributor
    Comments (52) | Send Message
     
    This is silly. Sell a large cap with 2.2 percent dividend per year vs 0.22 percent per year for a 10 yr note?
    1 Jun 2013, 03:44 AM Reply Like
  • june1234
    , contributor
    Comments (2499) | Send Message
     
    Before 08 treasuries and equities moved in opposite directions. Not true anymore
    1 Jun 2013, 07:50 AM Reply Like
  • hecky
    , contributor
    Comments (89) | Send Message
     
    God bless those who see 2.20% as a good return.
    1 Jun 2013, 11:42 AM Reply Like
  • positivethoughts
    , contributor
    Comments (1811) | Send Message
     
    I know - that's what I was thinking. 2.2% wont even keep up with real inflation.
    1 Jun 2013, 12:49 PM Reply Like
  • Aristiphones
    , contributor
    Comments (1327) | Send Message
     
    well...these are "really high yields"...so start buying. who knows what moves equities...i'd really like to see a correlation between treasuries and equities to see if any ever existed actually. we've had three huge stock market bubbles since 1981...and treasuries have had only one downturn in that time froma (1993-1994.) could it be the "biggest bubble of them all." possibly. but more than like you treasuries popping "all those other fixed income bubbles out there." this will BLEED into foreign markets and "other sovereign exposure." and should the Fed decide to ramp up not down the asset purchases...well, obviously cost savings can be done as well here as it can be overseas.
    1 Jun 2013, 02:05 PM Reply Like
  • iknow777
    , contributor
    Comments (32) | Send Message
     
    Ooops an etf for tips just appeared- keep moving the cattle.
    1 Jun 2013, 03:14 PM Reply Like
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