Shares of power-plant operators fell as traders continued to migrate out of rate-averse, or "bond proxy," sectors and into financials. "With the exception of Telecom, bond proxy sectors underperformed both in the third quarter and the month of September as the Fed announced balance sheet normalization and the 10-year yield climbed nearly 30 basis points from its early-September lows, erasing July and August declines," said analysts at brokerage Bank of America Merrill Lynch Global Research, in a note to clients. The BofA analysts noted that utilities were the worst performer of the 11 sectors on the Standard & Poor's 500 in September and financials, who benefit from higher interest rates, were the strongest.
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(END) Dow Jones Newswires
October 03, 2017 16:19 ET (20:19 GMT)