Placeholder canvas
11.4 C
Thursday, February 22, 2024
HomeBusiness10-Year Treasury Reaches Highest Level Since 2007, Impacting Utilities Slide

10-Year Treasury Reaches Highest Level Since 2007, Impacting Utilities Slide


Related stories

Limited physical release of Xbox’s Pentiment for Switch with pre-orders opening soon.

Obsidian Entertainment's game Pentiment is now available on the...

Custom chip manufacturing deal between Microsoft and Intel.

Intel and Microsoft have entered into a partnership that...

Joe Biden’s dog Commander bites Secret Service agents at least 24 times.

President Joe Biden's dog, Commander, was involved in at...

Shares of power producers (NYSEARCA:XLU) experienced a significant decline as U.S. Treasury yields reached multiyear highs. This decrease in demand for dividend-oriented utility stocks occurred as the yield on the 10-year Treasury note closed at 4.625%, its highest level since 2007. The S&P 500 Utilities Index also saw a negative trend, closing -1.9% after touching its lowest intraday level since March 2021 and losing 6% over the past five sessions.

NextEra Energy (NYSE:NEE) was particularly affected, with an 8.2% plunge on Wednesday, leading losses on the index. This decline came after NextEra Energy Partners (NEP) cut its forecast for full-year run-rate adjusted EBITDA and growth-rate expectations for limited partner distributions. NextEra Energy also announced the sale of its Florida City Gas utility to Chesapeake Utilities for $923 million in cash. Other significant decliners in Wednesday’s trading included American Water Works (AWK), NiSource (NI), DTE Energy (DTE), Eversource Energy (ES), Southern Co. (SO), Alliant Energy (LNT), Consolidated Edison (ED), PPL Corp. (PPL), Wisconsin Energy (WEC), and Dominion Energy (D).

Overall, the sharp decline in power producers’ shares was driven by the rise in U.S. Treasury yields, which reduced demand for dividend-oriented utility stocks. This negative trend was reflected in the performance of the S&P 500 Utilities Index, as it reached its lowest level since March 2021. NextEra Energy experienced a significant drop due to revised forecasts and the sale of a major asset. These factors, combined with declines in other utility stocks, contributed to the overall downtrend in the power producers sector.

Source link


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories


Please enter your comment!
Please enter your name here