The historical relationship between Treasury yields and the S&P 500 index
- 1The 10-year Treasury yield reached 5.34% last week.
- 2Since 1985, the 10-year Treasury yield has risen at least 1.5 standard deviations above its one-year average eight times.
- 3The Shiller CAPE ratio recently reached 41.4.
So what's the key point?
The interest rate received when lending money to the government rose to 5.34%. The metric used to see how expensive stock prices are relative to earnings has also increased.
Source The Motley Fool +1 · View original ↗
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