From Mish's Global Economic Trend Analysis:
For months I have been suggesting that as long as bids for corporate bonds remain firm the stock market will not collapse. (Note that "not collapse" is not the same as continue to rise.)
We are now starting to see cracks in the corporate bond market. Please consider Bond Sales Tumble 90%, Junk Returns Go Negative: Credit Markets.
Investment-grade debt sales are drying up and returns on high-yield bonds have turned negative for the year as...
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More on bonds:
Morgan Stanley: Treasury yields to rocket higher in 2010
Porter Stansberry: My best advice for profiting from bonds
Contrarian take: Why bonds could be a good bet this year