#BofAStockBondDivide

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About BofAStockBondDivide

BofA’s fund manager survey puts the average 10Y Treasury yield needed to shift from stocks to bonds at ~5.9%; 37% cite 6%, and 19% have begun reallocating. BlackRock ended nearly 6 years of Treasury underweighting, going overweight short-term debt and neutral on US stocks. The 10Y yield is ~5.2%; no broad rotation has emerged. High rates favor short bonds, but rising long yields may weigh on stocks. Will funds shift before 6%, or will higher yields amplify stock and bond volatility?