Entering text into the input field will update the search result below

Higher Bond Yields Punish Housing Stocks Again

Aug. 13, 2013 11:31 AM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

One of the most important charts that any trader can follow at this stage of the game is the chart of the 10-year U.S. Treasury yield. Today, the yield on the 10-year U.S. Treasury Note is 2.71 percent. Higher bond yields have adversely affected the most housing stocks, commercial real estate stocks, mortgage REITS, and utility stocks.

The housing stocks are the most obvious industry group that is coming under selling pressure when interest rates rise. Leading housing stocks such as Lennar Corp. (NYSE:LEN), KB Home (NYSE:KBH), Toll Brothers Inc. (NYSE:TOL), and others in the sector are all trading sharply lower on the session. Traders that would like to follow the entire home builder sector can follow the iShares Dow Jones US Home Construction ETF (NYSERACA:ITB). Short term day traders should watch for intra-day support on the ITB around the $20.65 level.

Nicholas Santiago
InTheMoneyStocks.com

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You