Utilities strength In spite of rising rates

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sss12

Anyone have any insight as to why , with the ten year moving up through + 2.5 % , the XLU been showing such strength lately ? Thx
 
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xlu is a defacto bond/equity hybrid.. it appreciates in rising equity market..yielding a high enough level to be competitive. So if bets are equities will rise XLU is better, than investing in bond funds. Flight out of decimation in bonds. If equities are about to be hit, bond funds will see flight into vs XLU.
 
Well, look at the debt holdings for that utility before you leap - it's a very capital intensive industry and interest rates can hurt their pee-pee.

A stronger industrial economic sentiment and cold weather is helping imo.
 
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