Utilities frequently carry significant debt loads, making them highly sensitive to adjustments in the cost of capital. Beyond debt pressures, these companies are widely viewed as bond proxies by institutional investors who gravitate toward them for steady dividend yields. When interest rates rise, the appeal of these defensive stocks often diminishes as safer, higher-yielding government bonds become more attractive alternatives. Market participants are now holding positions steady, waiting for the central bank to clarify its trajectory before committing to new moves in the sector.