BofA’s Yield of No Return for Equities is 1.75%: Taking Stock

When does the bond market get so stressed out that it becomes a problem for stock investors? When the 10-year note’s yield reaches 1.75%, says Bank of America.

As yields hovered near rock-bottom lows, many asset allocators were forced into equities -- but they’re more likely to move back to traditional fixed-income assets if the rate on 10-year Treasuries breaches that level, wrote strategists at the bank led by Savita Subramanian. History suggests that’s “the tipping point at which asset allocators begin to shift back into bonds.”