Utilities Down As Treasury Yields Rise - Utilities Roundup

Features Dow Jones Newswires

Shares of power-plant operators fell as Treasury yields hit a near 10-month high. Treasury yields rose after reductions in targeted bond buybacks from the Bank of Japan caused ripple effects in global bond markets. The impact of the Federal Reserve's efforts to normalize interest rates by ending its quantitative-easing program had been muted by the looser monetary policies of global central banks, said Jeffrey Pavlik, founder of hedge fund firm Pavlik Capital Management, in a recent interview. For utility stocks, yields on Treasurys are a key variable as fixed-income investors often toggle between Treasurys and utilities, depending on the difference in yields. In a rare development, all five members of the Federal Energy Regulatory Commission, some appointed by the Trump administration, quashed a White House move that would have kept some struggling coal and nuclear plants running, The Wall Street Journal reported.

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-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

January 09, 2018 16:14 ET (21:14 GMT)