XLP: Treasuries Weigh In

01/28/13 10:46AM EST

Over the last few weeks, the spread on the 10-year Treasury and the yield of the Consumer Staples Select Sector SPDR ETF (XLP) has decreased by 0.44% (from -1.39% to -0.95%). This represents a combination of price performance of the XLP combined with the fact that yields have crept higher. Why does this matter? We’ve noticed that the XLP has become increasingly sensitive to changes in yields on government securities in recent years.

XLP: Treasuries Weigh In - Yield spread

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.