DJ Utilities, Real-Estate Stocks Fall as Bond Yields Rise -- Barrons.com

By Andrew Bary

3:50 p.m. Interest-rate sensitive sectors of the stock market got hit Wednesday after a sharp selloff in the Treasury market sent the yield on the 10-year note to its highest level since 2011.

The yield on the 10-year Treasury rose to 3.15% from 3.06% and the yield on the 30-year bond increased to 3.30% from 3.22% after a price decline of about 1 1/2 points.

The Utilities Select Sector SPDR (ticker: XLU) exchange-traded fund was off 77 cents to $52.44, a 1.4% drop, and the Vanguard Real Estate ETF (VNQ) was down 0.85 to $78.90, a 1.1% decline.

Financial stocks, which are perceived as winners from higher rates, were leading the stock market. The Financial Select Sector ETF (XLF) gained 22 cents to $27.91.

Preferred stock, whose fixed dividends give the shares bond-like characteristics, also was getting hit. The iShares U.S. Preferred Stock ETF (PFF) fell 18 cents to $36.40, after hitting a new 52-week low earlier in the session. The Preferred ETF yields 5.6%.

Write to Andrew Bary at andrew.bary@barrons.com

(END) Dow Jones Newswires

October 03, 2018 16:08 ET (20:08 GMT)

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