Utility Dividend Yields vs. 10-Year Treasuries
Tuesday, December 8th, 2009Tom Schumacher submits:
The utilities sector has been much talked about since Warren Buffet and Bill Gross threw their support behind it. We thought it would be interesting to take a look at the historical yields of utilities vs. the 10-year Treasury yield. The current spread provides an opportunity to short the 10-year Treasury yield and go long utilities. Should the yield spread contract to historical levels, this strategy would have the potential for significant appreciation.
