US stocks and the utilities sector continued to rise on Wednesday, as US long-term treasury yields fell to their lowest level in three months.
The Zhitong Finance app learned that the US stock market and utilities sector continued to rise on Wednesday, as US long-term treasury yields fell to their lowest level in three months. Previous data showed that the number of employed in the US private sector increased by 103,000 over the previous month in November, falling short of market expectations.
The yield on US long-term treasury bonds has been declining in recent weeks because the market expects that the job market will cool down and that signs of slowing inflation will cause the Fed to start cutting interest rates next year.
Data show that on Wednesday, 10-year US Treasury yields fell 5 basis points to 4.12%, and 30-year Treasury yields fell 8 basis points to 4.22%, all the lowest levels since August 31.
The fall in US Treasury yields has made yield-oriented utility stocks more attractive to fixed income investors. The utility selection industry index ETF-SPDR (XLU.US) led all S&P sectors on Wednesday and closed up 1.34%. After climbing about 12% from an October low, the decline so far this year has narrowed to less than 10%.
Specific individual stocks with the highest gains include New Era Energy (NEE.US) up 3.38%, Sampra Energy (SRE.US) up 2.99%, Axlon Power (EXC.US) up 2.36%, Dominion Resources (D.US) up 2.03%, US Southern (SO.US) up 1.88%, and West Panaca Capital (PNW.US) up 1.86%.