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LivestreamMenuBond yields edged higher on Thursday morning, erasing much of Wednesday’s relief which came after the Treasury Department announced plans to increase its purchases of longer-dated government debt. The surge in long-term Treasury yields has rattled the stock market, there are some names that could get a boost. Using LSEG data, CNBC Pro screened the S & P 1500 for stocks with the strongest negative 60-day correlations to the iShares 20+ Year Treasury Bond ETF (TLT) . TLT tracks long-term U.S. government debt with maturities over 20 years. In other words, these stocks tend to rise when yields move higher and push Treasury prices lower. One group overwhelmingly stood out on the list: energy. ConocoPhillips had the strongest inverse relationship, with a 60-day correlation of negative 0.65 to TLT. Permian Resources and ExxonMobil followed, each with correlations of negative 0.61. Chord Energy and Chevron both had 60-day correlations of negative 0.59, while Houston-based Devon Energy came in at negative 0.58 and Occidental Petroleum at negative 0.57. The pattern stretched across the industry with SM Energy and Ovintiv each with correlations of negative 0.56, while EOG Resources and Viper Energy at negative 0.55. APA , Diamondback Energy and Matador Resources also moved in the opposite direction to the TLT. The concentration of oil companies on the screen comes at a time when supply constraints through the Strait of Hormuz remain uncertain. Higher oil prices can improve the earnings outlook for oil producers but at the same time add to inflation concerns, putting pressure on Treasury prices and pushing yields higher. Other commodity-related companies also appeared on the screen. Chemical manufacturer, LyondellBasell had a negative 0.51 correlation with TLT, while Dow came in at negative 0.49. — CNBC’s Nick Wells contributed reporting.Read More
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