(Bloomberg) -- Treasuries reached the cheapest level relative to stocks in 3 1/2 years before U.S. data today projected to show durable-goods orders rebounded, bolstering the case for the Federal Reserve to further slow stimulus.

The Standard & Poor’s 500 Index climbed to a record in New York yesterday, cutting the ratio of estimated corporate earnings to share prices to 6.06%, according to data compiled by Bloomberg. The difference between the earnings yield and the 10-year Treasury yield narrowed to 3.13%age points yesterday, the least since May 2010 and compares with the three-year average of 5.09 points.

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