Utilities Stocks Plummet as Treasury Yields Surge

The utilities sector, represented by the Utilities Select Sector SPDR Fund (XLU), is lagging behind other S&P groups as U.S. Treasury yields continue to rise, reaching fresh highs for the year. The 10-year yield is at its highest level since August 2007, while the 30-year yield is approaching its 2010 high. This surge in yields is providing income-oriented investors with alternative options, causing a sell-off in utilities. NextEra Energy (NEE) is among the biggest losers, plunging 11.9%. The utilities sector is now down 21% year-to-date, compared to an 11% gain in the S&P 500.