Sector movers: Utilities and Electricity shares fall as bond yields grind higher

(Sharecast News) - Interest rate sensitive Utilities and Electricity shares were knocked lower on Wednesday by a renewed rise in longer-term government bond yields on either side of the Atlantic. Pushing yields higher were remarks the day before from Minneapolis Fed chief Neel Kashkari, who pointed out that as far as he knew no one had formally ruled the possibility of further rate hikes.

Another trigger were the underwhelming results, also the night before, in the latest auction of US Treasuries amid the current elevated funding needs.

Against that backdrop, 10-year Gilt yields jumped 13 basis points to 4.411%, while those on similarly-dated US Treasuries gained six basis points to 4.62%.

In both cases yields yields appeared to be slowly grinding back to their 2023 highs.

Nonetheless, the expectation of some economists was that the PCE price data due out in the US at the end of the week and covering the month of April would provide some respite.

With Treasury yields higher and shares lower in the US and Europe, which in turn meant less risk appetite, the Greenback caught a bid and dragged on precious metals miners' shares.

Top performing sectors so far today

Oil, Gas and Coal 9,237.64 +0.63%

Non-life Insurance 3,661.51 +0.48%

Food Producers 8,339.62 +0.37%

Leisure Goods 24,295.27 +0.37%

Alternative Energy 0.00 0.00%

Bottom performing sectors so far today

Automobiles & Parts 1,066.40 -3.51%

Gas, Water & Multiutilities 5,407.78 -2.80%

Electricity 10,229.04 -2.51%

Precious Metals and Mining 10,579.74 -2.21%

Travel & Leisure 7,210.14 -2.10%