Fireball! Are Treasury Bonds Too Expensive? S&P 500 Dividend Yield Above 10y Treasury Yield

by Anthony B. Sanders
Anthony B. Sanders’ Blog

The Federal Reserve and other global Central Banks have balance sheets that are just short of 40% of GDP.

[…] By propping up Treasury/sovereign debt prices, yields have fallen. And now have fallen below the S&P 500 dividend yield. But are Treasury prices too high?

The S&P 500 dividend yield is once again again above the 10 year Treasury yield. The last time this happened was before the May Day, 2013 surge in the 10 year Treasury yield. Once the 10 Treasury note decreased in price around May 1, 2013, the yield rose enough to be above the S&P 500 dividend yield again. And the dividend spread has remained positive for all of 2016.

Continue Reading at…