Over the past ten years (less so prior), the relationship between the change in the 10 year Treasury yield and the change in the S&P 500 has been strong with the 10 year Treasury leading. Note the breakdown in the relationship over the past year (perhaps due to Fed intervention).
Source: Federal Reserve / Yahoo Finance
Are you shure there is a breakdown in relationship? To me it looks more like a level shift at a certain break, while the relationship still exists.
ReplyDeleteTrue. The second derivatives are moving in the same direction, but there is a shift.
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