Utilities crushed as Treasury yields continue to soar; NextEra plunges 12%
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The utilities sector (NYSEARCA:XLU) lags far behind the 10 remaining S&P groups, -5.5% in Monday's trading, pressured by continued selling in U.S. Treasurys that is driving yields on the 10-year and 30-year bonds to fresh highs for the year, giving income-oriented investors alternative options.
The 10-year yield is up 12 bps at 4.69%, hovering at levels not seen since August 2007, while the 30-year yield is up 10 bps at 4.81%, within reach of its 2010 high 4.86%.
The utilities sector, represented by the Utilities Select Sector SPDR Fund (XLU), is now -21% YTD vs. an 11% gain so far this year in the S&P 500.
Utilities dominate Monday's list of the S&P biggest losers: (NEE) -11.9%, (AES) -6.2%, (PCG) -5.5%, (NI) -5.3%, (PWR) -5.2%, (D) -5.2%, (EVRG) -5%, (AEE) -5%, (CMS) -5%, (CEG) -4.7%, (AEP) -4.7%, (LNT) -4.7%.
Avangrid (AGR) -6.7% to an all-time intraday low; other big decliners include (PCG) -6%, (CWEN) -6%, (ED) -4.7%, (WEC) -4.7%, (CNP) -4.6%, (FE) -4.6%, (OGE) -4.5%, (SRE) -4.5%, (ES) -4.2%, (PPL) -4.2%, (PEG) -4.2%, (DTE) -4.1%, (ETR) -4.1%, (SRE) -4.1%.

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