Bonds have been shunned by many investors as rock-bottom rates made them unattractive relative to equities. On Thursday, the bond market may have gained an upper hand in the eyes of some investors.
The 10-year Treasury yield soared more than 16 basis points to a high of 1.614%, its highest level since February 2020. The spike put the benchmark rate above the S&P 500’s dividend yield, which stood at about 1.43%, according to FactSet calculations based on payouts of the last 12 months.
The milestone is important to large investors who monitor valuations across assets since Treasurys are considered the risk-free rate, so that means equities have lost their premium over bonds, yet are riskier…