Source: Financial Times
10 year yield marching higher which might in part explain equity market softness and declining share values for capital-intensive regulated
monopolies oligopolies (telecom, pipelines, etc.).
Nevertheless, in nominal terms and very much so in real terms, the 10 year yield is still low by recent historical standards.
Been buying BCE and Enbridge. Looking forward to picking up Pembina Pipelines and Telus. Fortis BC is also on the watch list on the assumption that any permanent increases in natural gas costs will be readily passed on to customers.
Risk: Looks like overnight central bank rates in North America may ultimately stay high for longer.