The dominant bond market theme while the US Federal Reserve has been engaged in QE is the fall in TIPS yields. 10 Year TIPS yields fell from 3% in the fall of 2008 to a low of -.84% on December 1, 2012. Falling real rates have been very supportive for stocks, with the correlation between the S&P 500 and 10 Year TIPS yields at 93% over the last five years. It appears that stocks are nearing a critical juncture with respect to the relationship with TIPS yields. We are getting near the point where the lagged impact of rising real rates could begin to have a negative impact on stocks.