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Shares of utility companies (NYSEARCA:XLU) fell across the board Monday after Federal Reserve Chairman Jerome Powell’s weekend comments helped spark big gains in Treasury yields.
In an interview with 60 Minutes that aired Sunday, Powell reiterated comments made after last week’s January policy meeting suggesting that a rate cut in March was unlikely.
The 10-year yield rose more than 13 bps to 4.163% Monday, the 30-year yield climbed nearly 12 bps to 4.345%, and the policy sensitive 2-year rate popped ~10 bps to finish at 4.470%, a nearly two-month high.
Benchmark 10- and 30-year Treasury yields have jumped by the most over the past two trading sessions than anytime since June 2022 and March 2020, respectively.
NextEra Energy (NEE) led the day’s losers among major utilities, -3.7%; other notable decliners included AES Corp. (AES) -3%, Eversource Energy (ES) -2.7%, Alliant Energy (LNT) -2.4%, American Electric Power (AEP) -2.3%, WEC Energy (WEC) -2.3%, Xcel Energy (XEL) -2.1%, Southern Co. (SO) -2.1%, Exelon (EXC) -2.1%, Dominion Energy (D) -2.1%, Ameren (AEE) -2%, Constellation Energy (CEG) -2%, CMS Energy (CMS) -2%, Evergy (EVRG) -2%.