"The relationship between the US stock and bond markets has broken down, according to a new Deutsche Bank analysis that underscores uneven fundamentals between the two.
"The US 10-year Treasury yield has diverged sharply from the S&P 500's year-over-year change, leading Torsten Sløk, the firm's chief international economist, to contend that either the stock market is too low or that long-term rates are too high. Either way, he said, "Something is wrong."
" "What is safe to say is that there is something driving equities lower, which is not impacting rates," Sløk added. "Or there is something keeping long rates high, which is not impacting equities." "
Unless it's Wednesday. In which case, something is driving equities higher.
Article: https://markets.businessinsider.com...-disconnect-sp-500-10-year-2018-12-1027832470
"The US 10-year Treasury yield has diverged sharply from the S&P 500's year-over-year change, leading Torsten Sløk, the firm's chief international economist, to contend that either the stock market is too low or that long-term rates are too high. Either way, he said, "Something is wrong."
" "What is safe to say is that there is something driving equities lower, which is not impacting rates," Sløk added. "Or there is something keeping long rates high, which is not impacting equities." "
Unless it's Wednesday. In which case, something is driving equities higher.
Article: https://markets.businessinsider.com...-disconnect-sp-500-10-year-2018-12-1027832470
