Normally, a ratio of bond yield to earnings yield of 1.0 is considered cheap.
Currently, we are using a 10-year Treasury bond yield of 6% as a discount rate.
The 10-year Treasury bond yield reached 2.36% this morning, up from around 1.87% in past months.
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If rates remain unchanged in May 2012 the Bank of Oklahoma bond yield will be 1.09%.
Moreover, the 30 year bond yield fell by 14 basis points down to 2.72%.
The Italian 10-year government bond yield was largely steady after the sale, yielding 6.20%.
Real interest rates are negative going out 10 years on the Treasury bond yield curve.
If EPS estimates are cut and the bond yield rises, stock valuations will become less attractive.
Stock market strength and a higher 30-Year bond yield have pushed down equity valuations.
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When gold was at its real all-time high in 1980, the ten-year Treasury-bond yield was 10.8%.
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It is the amount by which the generally riskier equity yield exceeds the less risky bond yield.
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The Euro Zone 10-year bond yield is 4.626%, and the Japanese 10-year bond yield is 1.985%.
And an earnings yield a nice way of comparing a stock to a bond yield of more than 10%.
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The low bond yield signals no fear of inflation, but the high gold price signals the opposite.
Spain's ten-year government-bond yield has been rising since the second tranche of three-year ECB cash was doled out.
The ten year GDP-weighted average euro priced government bond yield is now at 5.29%, the highest since 2002.
Now to put that into context, the equivalent UK bond yield is around 2.2% and Germany's is 1.8%.
The bond yield, which was as low as 2.439% on July 26, rose to 3.109% by last Friday.
Because of stock market strength and a higher 30-Year bond yield, equity valuations are less undervalued and more overvalued.
With a flat bond yield curve and oil quots moving lower, the oils are in for a tough year.
Stocks are currently overvalued and will become more overvalued as long as the bond yield remains elevated and rising.
When pension funds calculate the value of their liabilities, they therefore use a bond yield to discount future payments.
However, on Monday, Italy's 10-year bond yield jumped 0.3 percentage points to 4.8%.
Remember that a higher bond yield makes stocks less undervalued and more overvalued.
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For example, the 10-year Treasury bond yield rose 2 basis points to 2.01% yesterday, indicating falling prices on lower demand.
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Cyprus was hardest hit, with its seven-year bond yield jumping by more than 1.5 percentage points to just over 10%.
The major indexes and the dollar fell, while the benchmark 10-year Treasury bond yield dropped to 3.98% from late-Wednesday's 4.05%.
That is why the government-bond yield is the appropriate measure for discounting public liabilities, as Messrs Rauh and Novy-Marx assert.
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The comparison should be with a "real, " or inflation-adjusted, bond yield because real estate values tend to keep up with inflation.
In a sign of further volatility, the benchmark 10-year Japanese government bond yield hit 1.0%, the highest in nearly a year.
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