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Strategist with 40 years on the Street: Bonds will compete with stocks on returns if yields double

Treasury-bond returns need to be at 5 percent before they can compete with stocks on returns, strategist Feature Grant told CNBC on Wednesday.

Grant appeared on “Squawk Box” alongside Kevin O’Leary of “Shark Tank” a day after command debt yields slipped as U.S. stocks saw a volatile trading session.

O’Leary inquired the chief strategist at Hilltop Securities what percentage the yield pass on need to substitute equities.

“You would need about 5 percent beforehand something like that would make sense,” Grant replied.

As of antiquated Wednesday, the yields on the benchmark 10-year Treasury note and the 30-year Bank bond were at about 2.7 percent and 3 percent, respectively, as investors held a close eye on massive swings seen in international and domestic markets.

“They would receive to drop in value by 50 percent before you would buy them,” O’Leary contended. Restraints prices move inversely to yields.

“Under what scenario drive that happen?” O’Leary asked Grant.

Grant responded with, “There’s a lot of big kale managers … that have mandates to buy bonds, plus the big put out to pasture funds” could impact yields.

He also spoke on the stock deal in’s massive swings this week.

The Dow traded in a more than 1,000-point order Tuesday and ended with a 567-point gain. It marked the basic time in history that the Dow was both up 500 and down 500 subjects in the same session.

Grant said the market is seeing a correction but cautioned investors from exaggerating.

“I’ve been doing this for 43 years,” Grant said. “The Terra is not melting down. … Some days it’s ugly, but you have to put nauseating in perspective.”

Disclosure: CNBC owns the exclusive off-network cable goods to “Shark Tank.”

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