US Corporate AAA Effective Yield data by YCharts To put that chart into perspective, the dividend yield on the S&P 500 SPDR ETF (NYSEMKT: SPY) is 1.85%. Deflation encourages people to defer spending (because goods will only get cheaper), which in turn creates a sluggish economy, since consumption is the primary driver of GDP. Investors buying the 10-year Treasury note at a yield of 0.70% are making a bet that deflation is going to occur and the Fed will continue to support the bond market.