US stocks show sharpest divergence from 10-year Treasury yield since 1999
US stocks are experiencing their sharpest divergence from the 10-year Treasury yield since 1999. The correlation between the S&P 500 and Treasury yields has turned dramatically negative, prompting portfolio managers to reconsider their strategies. This shift indicates that bonds are becoming more attractive compared to stocks, impacting various risk assets including cryptocurrencies.
- ▪The rolling 30-day correlation between the S&P 500 and the 10-year Treasury yield has dropped to -0.68.
- ▪At the start of 2026, this correlation was positive at approximately +0.40.
- ▪The 10-year Treasury yield reached 4.62%, making government bonds more appealing to investors.
- ▪This negative correlation is reminiscent of the late 1990s, which preceded significant market corrections.
- ▪Higher yields increase the opportunity cost of holding non-yielding assets like Bitcoin.
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US stocks show sharpest divergence from 10-year Treasury yield since 1999 The correlation between the S&P 500 and Treasury yields has flipped dramatically negative, creating ripple effects across risk assets including crypto. Share Add us on Google by Editorial Team May. 22, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); Stocks and bonds are moving in opposite directions at a pace not seen since the tail end of the dot-com era.
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