Stock market and bond proxies show increased sensitivity to Treasury yields
TLT iShares 20+ Year Treasury Bond ETF
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View chart & analysis → - 1Many S&P sector stocks are reacting more sensitively to Treasury yields than almost any other time in the past five years.
- 2The 5-year Treasury yield is at approximately 4.75%.
- 3A 1 percentage point drop in yields is expected to yield an annual return of approximately 9.2%.
So what's the key point?
The stock market is moving more sensitively to changes in Treasury yields than before. This means that if yields fall by 1 percentage point, an annual return of approximately 9.2% can be expected.
Source Real Investment Advice · View original ↗
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