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BUZZ-UK utilities: bond proxies knocked

** UK utilities, often used as a bond proxy by investors in a low-rate environment, under pressure following steep falls from their US peers on Friday

** United Utilities (LSE: UU.L - news) top FTSE 100 faller, down 3.7 pct, followed by Severn Trent (Other OTC: STRNY - news) , 2.8 pct weaker, in relatively strong volume

** The S&P 500 index of utilities fell 4.1 pct, its biggest daily drop since August 2011, as US government debt yields jumped

** Strong US jobs report raised expectations that Fed will increase interest rates by mid-year (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)