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Feb. 25, 2021, 11:29 a.m. EST

10-year Treasury rate briefly passes S&P 500 dividend yield

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By Sunny Oh


Benchmark Treasury yields on Thursday briefly broke through a key line in the sand that investors say could start to present trouble for record-high U.S. equities. The 10-year note rose as high as 1.49%, before settling down to 1.46% on Thursday. In its climb higher, the benchmark maturity passed the S&P 500's /zigman2/quotes/210599714/realtime SPX -0.41% average dividend yield of 1.48%. That could raise the relative attractiveness of U.S. government bonds to the expense of high dividend-paying sectors like utilities. If long-term bond yields persist above the dividend rates paid out by major U.S. corporations, analysts have said it could add to concerns around elevated valuations in the stock market. The S&P 500 is down 0.9%, leaving it on pace for a 0.4% loss for the week.

-16.93 -0.41%
Volume: 2.09B
April 14, 2021 5:15p

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