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Momentum Global says S&P 500 equity risk premium over US 10-year Treasuries narrows, boosting bonds’ appeal

PUBT·10/12/2026 09:53:33
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Momentum Global says S&P 500 equity risk premium over US 10-year Treasuries narrows, boosting bonds’ appeal
  • Momentum Global Investment Management flagged a sharp decline in the S&P 500 equity risk premium versus the US 10-year Treasury.
  • Analysis warned that equities look less compelling as earnings yields fall below government bond yields, strengthening the case for bonds.
  • Higher yields near 6% were cited as a potential catalyst for investors to rebuild bond allocations despite recency bias from heavy losses since 2021.
  • Week ended Oct. 9 saw US Treasury yields hit fresh multi-year highs before easing, supported by stronger auction demand.
  • UK gilt yields jumped with the global sell-off, lifting scrutiny of fiscal credibility ahead of the Autumn Budget.


Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Momentum Global Investment Management Ltd. published the original content used to generate this news brief on October 12, 2026, and is solely responsible for the information contained therein.