U.S. Treasury yields continued to slide on Friday as investors awaited housing data. At 4:05 a.m. ET, the 10-year Treasury fell more than one basis point to 4.6006%. The 2-year Treasury yield fell more than one basis point to 4.2297%. One basis point is equal to 0.01% and yields and prices have an inverted relationship.

The takeaway is that stock investors should pay more attention to valuations and less to interest rates. In fact, the level of interest rates dilutes the signal from valuations, as reflected in the fact that correlations with forward stock returns are higher for valuations alone than for the equity risk premium.

U.S. Treasury yields edged higher on Thursday as investors mulled over the latest inflation data and looked ahead to further key economic reports.