Posted 10/6/2023, 4:41:00 PM
Rising Yields Hit Bond Proxy Stocks as Investors Flee to Higher Returns
- Soaring Treasury yields have hit "bond proxy" stocks like utilities and staples that are known for stable dividends.
- Utilities have tumbled 13% since the hawkish Fed meeting sent yields surging.
- Staples and real estate have also struggled as investors can now get better yields on low-risk bonds.
- Next week's CPI report and start of earnings season could determine near-term market direction.
- Whether bond proxies are a good buy depends on one's view on how much farther yields may rise.
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