New Bonds

"Negative! Negative!"
--Lt Chris Burnett (Behind Enemy Lines)

Real 10 yr yields are at -1.5%. Lowest since 1980. This means that T-note owners are losing money on their bond coupons.

The Real 10-Year Treasury Yield (yield minus core CPI) moved down to -1.5% today, its lowest level since July 1980. Back then the 10-year yield was 10.8% and core inflation was 12.4%. pic.twitter.com/09J8854OzP

— Charlie Bilello (@charliebilello) March 6, 2020

For those seeking income, dividend stocks look increasingly attractive. Falling stock prices up the ante even more.

As long as bond markets remain the object of monetary policy manipulation, it is hard to ignore the income generating capacity of dividend-paying equities here--particularly for investors less sensitive to fluctuations in underlying account value due to volatile markets.

Lower stock prices provide opportunity to buy more income. Perhaps stocks are becoming the new bonds.