Wednesday, September 7, 2011

Important charts : 10-Year Treasury yield vs S&P 500 dividend yield


The 10-Year Treasury yield moved below 2% on Friday for the first time since the middle of 1950.  The yield currently sits at 1.98%.



The big drop recently in the 10-Year yield as well as the drop in equities has pushed the dividend yield of the S&P 500 above the yield on the 10-Year. At the moment, the S&P 500 is yielding 26 basis points more than the 10-Year, so it still has a ways to go before it gets as wide as it got back in early 2009.

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