Fund managers won't dump stocks for bonds until yields hit 5.9%, BofA survey says: Chart of the Day Ines Ferré · Senior Business Reporter Tue, October 13, 2026 at 12:12 PM EDT 1 min read ^TNX -0.32% ^GSPC -0.13% ^IXIC -0.27% CL=F +0.38% The rapid rise in bond yields has a ways to go before investors become bullish on Treasurys.
On Tuesday, the 10-year yield (^TNX) sat at 5.22%, with high economic growth amid an AI boom sending real yields higher, as shown in Yahoo Finance's AlphaSpace chart below.
According to the BofA Funds manager survey, investors say that a 10-year Treasury yield of 5.9% is required to flip asset allocation from stocks to bonds.
Bonds, which move inversely to yields, have suffered a steep rout since March 2022, when the Fed began raising interest rates.
Instead, stocks have been the place to be over the past four years of the bull market. Big Tech's soaring capital expenditures on AI infrastructure have sent its stocks to record highs.
However, the rapid rise in bond yields this year, coupled with high oil prices, concerns about AI risks, and weak market breadth, has prompted warnings of a potential pullback in equities.
The BofA survey showed that 32% of fund managers who responded believe the biggest tail risk to markets is a "disorderly rise in bond yields," followed by 23% who see the threat of an AI bubble as the biggest.
Asked whether there will be an AI bubble in 2027, 45% of fund managers surveyed said yes, and 42% said no, according to BofA.
Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities.
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