Bank of America: Bond attractiveness increases, U.S. stock returns may not match U.S. Treasury bonds

Bank of America Chief Strategist Savita Subramanian stated that bonds have become a competitive alternative asset to stocks for the first time. She pointed out that the yield on the U.S. 10-year Treasury has exceeded 5%, while the S&P 500 index's annualized return over the next 10 years may not reach this level.

Subramanian believes that the bond allocation environment is more favorable, and U.S. Treasury yields are unlikely to sustain levels above 6% to 7%.