Since the bull market began in March 2009, weekly stock prices of seven S&P 500 companies have been negatively correlated with 10-year U.S. Treasury yields. Not surprisingly, the overwhelming majority (six of the seven companies) are utilities.
Family Dollar Stores (consumer discretionary) was the only non-utility whose weekly returns were negatively correlated with 10-year U.S. Treasury yields in that period.
The average correlation among all 30 utility stocks during the period was 0.08. Consumer staples stocks were second (0.21), followed by health care (0.24) and telecoms (0.24).
In the Federal Reserve’s latest “dot plot” from December, 15 of 17 participating FOMC members said a rate increase in 2015 is likely to occur “under appropriate monetary policy.”