Michael Hartnett, Bank of America’s Chief Global Equity Strategist, recently published a masive report title The Longest Pictures. It includes tons of charts with some of the most obscure data out there, mostly sourced from Global Financial Data.
One cool chart that everyone should be able to understand is that of the 10-year Treasury note yield.
Hartnett notes that since 1902, Treasuries have followed distinct long-term bull and bear markets. From his report:
- 1790-1902: erratic yield fluctuations and then a sustained decline in yields to below 3%.
- 1902-1920: the First Bear Bond Market, yields rise from 3% to 5-6%.
- 1920-1946: the Great Bull Bond Market, yields decline from 5-6% to below 2%.
- 1946-1981: the Second Bear Bond Market, yields soar from 2% to above 15% during 1981.
- 1981-today: the Greatest Bull Bond Market, as yields tumble from 15% to 1.5% today.
Here’s the chart from Hartnett’s report.
Photo: Bank of America Merrill Lynch