Bond Yields May Have Peaked. Consider Stocks Like Coca-Cola and Johnson & Johnson.

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Bond yields are showing signs that they have peaked. If they keep dropping, it would make a host of stocks look attractive including Duke Energy, Coca-Cola,...

Bond yields are showing signs that they have peaked. If they keep dropping, it would make a host of stocks look attractive.

Those investors have plenty of reason to stay in the market, which would send the yield even lower. According to data from the St. Louis Fed, the yield is almost 2.5 percentage points above the average annual inflation rate expected over the next 10 years. Newsletter Sign-up Utilities are the poster child for this dynamic. The Utilities Select Sector SPDR fund , home to regulated utilities such as Duke Energy and Dominion Energy , is down almost 17% for the year, versus double-digit gains for the S&P 500. That puts the sector on pace for its worst annual underperformance on record, according to Dow Jones Market Data.

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