Utilities have been weakening as Treasury yields rose this month. Benchmark yields on 10-year Treasury have bounced back to 1.89%. Treasuries were on pace for their worst week since November after higher oil prices supported increased bets on rising inflation and strengthened the Federal Reserve’s case to hike interest rates this year.
“Inflation in the U.S. actually is rising and we do think you are going to get towards that target, maybe not this year, but starting into next year,” Jonathan Beinner, global fixed income chief investment officer at Goldman Sachs Asset Management, told Bloomberg.
[related_stories]Utilities Select Sector SPDR