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Record low bond yields bad for stocks: Study

Traders on the floor of the New York Stock Exchange
Brendan McDermid | Reuters

The yield on the U.S. 10-year Treasury note fell to a record low Tuesday and that's not a good thing for stock investors, if history is any guide. A CNBC PRO study of what works when Treasury yields plunge showed there are only a few stocks and ETFs that will post gains this month if rates continue their slide.

The 10-year yield, which ended 2015 at 2.30 percent, dropped to as low as 1.368 percent because of Brexit concerns sending investors into the safety of U.S. government bonds. Investors also believe the U.K. vote to leave the European Union may put the Fed on the sidelines for 2016 in terms of future interest rate increases.

Using data from Kensho, a tool designed to quantify historical events; CNBC PRO ran a study to find out how stocks could react to a further slide in the 10-year yield, specifically by 0.4 percentage point, which would take the yield below 1 percent.