Michael Hartnett at BofA with another terrific note.
Zeitgeist: “20-year corporate bonds now yielding 6.3%…you would think with stocks up 20% past 2years pension funds would be looking to park some of those gains in bonds”
The Biggest Picture: at no time in the past 90 years has 10-year rolling return from USTreasuries been negative. It is now (-0.5%–Chart2)–this is peak in “anything but bonds” trade of 2020s; by comparison, long-run returns for US stocks 13.1%, commodities 4.5%, IG bonds 2.4%, T-bills 1.8% (Charts4-5).
