As of this writing, the 10-year T note yields 1.437%, on a steady 3-month downward trend (from 1.55-1.75% in recent months) while the S&P 500 is nearing all-time-highs. When these long-term bond yields decline, it is due to a rise in the price of bonds. The recent rise in price of these treasury bonds can be attributed to very strong demand at recent US Treasury auctions.
It appears to me that there is a sort of dissonance in the markets. Money often flows from one asset class to the other, either from bonds to stocks or stocks to bonds. The fact that bond yields are decreasing while stock prices are soaring can only mean that more money is being channeled into both the bond market and into the stock market. I would like to ask if my analysis and deduction is correct and if this phenomena is occurring as a result of excess liquidity provided by the massive monetary stimulus of the Federal Reserve?