A rapid rise in U.S. bond yields is taking a toll across financial markets.
A rapid surge in U.S. bond yields is taking a toll on interest-rate sensitive portions of the stock market, stirring investor unease and raising questions about the durability of the 2023 bull run for equities.
The SPDR S&P Homebuilder ETF XHB steadied Wednesday, but is down 3.3% so far this week and has dropped more than 13% from its 52-week high set in August, according to FactSet.Utilities So much for playing defense in a stock-market downturn, utilities, a traditional defensive sector, got drubbed in September, falling around 6% for the second-worst performance after real estate, which is similarly rate-sensitive.
Utilities are viewed as a defensive play in part due to their high dividend yields, which means they trade in a manner similar to bonds, but with Treasurys and other bonds seeing yields rise, utility shares appear less attractive. Utilities also tend to carry high levels of debt, providing another avenue of rate sensitivity, analysts note.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
10-year Treasury yield rises to 4.74%, the highest since 2007U.S. Treasury yields were little changed on Tuesday as investors considered the state of the economy as they awaited data that could inform monetary policy.
Read more »
30-year Treasury yield ends at 16-year high above 4.9% amid aggressive selloffLong-dated Treasury yields establish new multiyear highs on Tuesday as traders push more market-implied rates toward 5% under the higher-for-longer theme.
Read more »
Asia-Pacific stocks set to fall as U.S. 10-year Treasury yield notches 16-year highAsia-Pacific markets are set to open mixed after the U.S. 10-year Treasury yield hit its highest in 16 years.
Read more »
Bill Gross says the surging 10-year Treasury yield could test 5% in the short termOne-time bond king Bill Gross believes Treasury yields have the potential to shoot even higher in the short run.
Read more »
Asia-Pacific stocks fall as U.S. 10-year Treasury yield notches 16-year highAsia-Pacific markets fall after the U.S. 10-year Treasury yield hit its highest in 16 years.
Read more »